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Students can Download Chapter 10 Internal Trade Notes, Plus One Business Studies Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Notes Chapter 10 Internal Trade

Contents

• Internal Trade – Meaning – Types
• Whole Sale Trade – Meaning – Function – Services to producers and retailers
• Retail Trade – Meaning – functions – services to producers/wholesalers and consumers
• Types of Retail trade – Itinerant Traders – Fixed shop retailers
• Departmental Store – Meaning – Features Advantages – Limitations
• Multiple shop – Meaning – Features – Advantages Limitations
• Mail order business – Meaning – Features Advantages – Limitations
• Consumer co – operative store – Meaning Features – Advantages – Limitations
• Supermarket – Meaning – Features – Advantages Limitations
• Vending Machines – Meaning
• Role of Chamber of Commerce and Industry

Internal Trade:
Buying and selling of goods and services within the boundaries of a nation are called internal trade. Internal trade can be classified into two broad categories viz.

• Wholesale trade
• Retail trade

Wholesale Trade:
Wholesale trade means buying goods in large quantities from the producers and selling them in smaller quantities to the retailers. Wholesalers acts as an important link between manufacturers and retailers.
Functions of Wholesaler:
1. Buying and assembling:
The wholesalers buy goods from different producers and keep them in a central place.

2. Warehousing:
The goods are to be kept in the I warehouses till they are sold to retailers.

3. Grading and packing:
The goods purchased are sorted out on the basis of quality and size. This is called grading. After grading they are packed in attractive packages

4. Pricing:
The wholesaler fix the price of products

5. Transportation:
The wholesalers move the goods from the production centre to the retail shop

6. Risk bearing:
They assume the risk like change in demand, spoilage, theft during transportation etc.

7. Financing:
Wholesalers purchase goods on cash basis from manufacturers and sell them to the retailers on credit basis.

8. Market information:
Wholesalers collect various market information for the benefits of manufacturers so that they can change the products accordingly

Services of Wholesalers to Manufacturers:
1. Facilitating large scale production:
As the wholesalers place bulk orders, the producers are able to undertake production on a large scale and take advantages of economies of scale.

2. Risk bearing:
Wholesaler deals in goods in their own name and bear variety of risks such as the risk of fall in prices, theft, pilferage spoilage, fire etc.

3. Financial assistance:
Wholesalers provide financial assistance to the manufacturers by making cash payment for the purchased goods.

4. Expert advice:
Wholesaler provide various useful information regarding the customer preference, market conditions etc to the manufacturer.

5. Help in marketing function:
As the wholesalers place bulk orders, it relieves the producer from many marketing activities and he can concentrate on production.

6. Storage facilities:
Wholesalers hold the goods in their own warehouses. It reduces the burden of storage of goods by the manufacturers.

7. Facilitate production continuity:
The wholesalers facilitate continuity of production activity throughout the year by purchasing the goods as and when these are produced

Services of Wholesalers to Retailers:
1. Availability of goods:
The wholesalers make the products of various manufacturers readily available to the retailers.

2. Marketing support:
They undertake advertisements and other sales promotional activities to induce customers to purchase the goods.

3. Grant of credit:
The wholesalers generally provide credit facilities to the retailers.

4. Specialised knowledge:
Wholesalers know the pulse of the market. They inform the retailers about the new products, their uses, quality, prices, etc.

5. Risk sharing:
Wholesalers sell goods to retailers in small quantities and thus retailers do not face the risk of storage, pilferage, reduction in prices etc.

Retail Trade:
Buying of goods in large quantities from the wholesalers and selling them in small quantities to the ultimate consumers is known as retail trade. Retailers serve as an important link between the producers and consumers in the distribution of products and services.
Functions of Retailers:

1. A retailer collects different varieties of goods. So he can satisfy different types of customers.
2. A retailer provides market information to wholesalers and manufacturers.
3. A retailer is in close contact with consumers. So he can persuade the consumers to buy the product.
4. Retailers locate their business in residential areas. It helps the consumers to purchase the product easily.
5. The retailers provide credit facilities to the consumers.
6. Retailers provide after sales services to attract consumers.

Services of Retailers to Manufacturers and Wholesalers:
1. Retailers help manufacturers & wholesalers in the distribution of their goods & services to the ultimate consumers.

2. Retailers undertake personal selling efforts and thus, help manufacturers and wholesalers to increase the sale of the products.

3. Retailers help manufacturers and wholesalers to operate production on a large scale by undertaking distribution of goods.

4. As retailers are in constant touch with customers, they can provide various market information such as the tastes, preferences and attitudes etc. of consumers to the producers.

5. Retailers participate in various sales promotional activities conducted by producers and wholesalers.

Services Retailers to Consumers:

1. Retailers provide goods to consumers according to their requirements.
2. Retailers keep large varieties of products of different manufacturers. It enable the customers to select goods according to their choice.
3. Retailers provide important information about the new products to the consumers.
4. Retailers also provide after sales services in the form of home delivery etc. to the customers.
5. Retailers often supply goods on credit to the customers.
6. Retailers keep ready stock of the products needed by the consumers.

Differences between wholesaler and Retailer:

Wholesaler	Retailers
1. They organize business on a large scale.	They organized business on a small scale.
2. Huge capital is required.	Less capital is required.
3. They have direct contact with producers.	They have direct contact with consumers.
4. Act as a link between producer and retailer.	Act as a link between wholesaler and consumer.
5. Location of business is not important.	Location business is important.
6. They do not provide after sales services.	They provide after sales services.
7. They deal in large quantities of goods.	They deal in small quantities of goods.

Types of Retail Trade:
Retail trade can be classified into following two categories on the basis whether or not they have a fixed place of business.

• Itinerant Retailers
• Fixed shop Retailers

Itinerant Retailers:
The retailers who do not have a fixed place of business to operate from are called itinerant retailers. They have to move from one place to another along with their goods in search of consumers.
Characteristics of itinerant retailers:

1. They are small traders having limited resources.
2. They generally deal in consumer products of daily use.
3. They emphasize on providing greater customer services.
4. They do not have any fixed place to operate from.

Types of itinerant retailers:
1. Peddlers and hawkers:
They cany the products on a bicycle, a hand cart, a cycle-rickshaw or on their heads, and move from place to place to sell their products at the doorstep of the customers. They generally deal in non-standardised and low- value products such as toys, vegetables, fruits etc.

2. Market traders:
They are the small retailer who open their shops at different places and sell the goods on fixed days such as every Saturday or Tuesday. These trader deals in single line of goods such as toys, readymade garment crockery, etc.

3. Street traders:
These traders display their articles on busy streets, bus stand, railway stations etc. They sell low priced articles like pen, books, magazines, hand kerchiefs etc. They do not change their place of business frequently.

4. Cheap jacks:
They are small retailers who have independent shops of a temporary nature in a business locality. They keep on changing their business from one locality to another but not very frequently. They deal in consumer items such as repair of watches, shoes, buckets etc.

Fixed Shop Retailers:
Retailers who maintain permanent establishment to sell their goods are called fixed shop retailers. Following are the main characteristics of fixed shop retailers.

1. They have greater resources and operate on a relatively large scale.
2. They deal in durable as well as non-durable goods.
3. They provide greater services to the customers such as home delivery, repairs, credit facilities etc.

Types of Fixed Shop Retailers:
The fixed-shop retailers can be classified into two. They are:

• Small shop-keepers
• Large retailers

Fixed Shop Small Retailers:
1. General stores:
These shops carry stock of a variety of products required to satisfy the day-to-day needs of the consumers residing in nearby localities. They deal products of daily use such as grocery items, soft drinks, Stationary etc.

2. Speciality shops:
These retail stores specialise in the sale of a specific line of products. For example, shops selling children’s garments, men’s wear, ladies shoes, toys and gifts, school uniforms etc. The speciality shops are generally located in a central place where a large number of customers can be attracted.

3. Street stall holders:
These shops are generally located at street crossings or in the main street. They usually display their goods on a table or by fixing shelf on the wall. Low priced articles such as pen, cosmetics, magazines etc. are sold in these stalls. .

4. Secondhand goods shop:
These shops deal in secondhand goods such as books, clothes, furniture, automobile etc. People who cannot afford to buy new articles, generally, becomes their customers.

Fixed shop large retailers:
Departmental stores:
A departmental store is a large scale retail shop selling a wide variety of goods in different departments under one and management. Each department deals in separate line of goods like stationary, books, furniture, clothing etc. Consumers can purchase all goods from the departmental store.
Features of a departmental store:

1. It Is a large scale retail organization.
2. A number of retail shops in the same building.
3. It offers a wide variety of products under one roof.
4. It is located at central places of the city
5. The products are arranged in separate departments
6. Sales, control and management are centralized
7. It offers various services and facilities like free home delivery etc

Advantages:

1. Central locations: As these stores are usually located at central places they attract a large number of customers
2. Convenience in buying: By offering large variety of goods under one roof, the departmental stores provide great convenience to customers in buying almost all goods of their requirements at one place.
3. Attractive services: A departmental store aims at providing maximum services to the customers.
4. Economy of large-scale operations: As these stores are organised in a very large-scale, the benefits of large-scale operations are available to them
5. Mutual advertisement:-All the departments are under one roof, so there is economy in advertising
6. Risk distribution: If there is a loss in one department, it may be compensated from the profit of other departments
7. Increased sales: Central location, mutual advertisement etc. will help a departmental store to increase its sales.

Limitations:
1. Lack of personal attention:
Because of the large- scale operations, it is very difficult to provide adequate personal attention to the customers in these stores.

2. Inconvenient location:
As a departmental store is generally situated at a central location, it is not convenient for the consumers who reside away from town.

3. High price:
A departmental store charges high price for the products because of high operating cost.

4. High operating cost:
As these stores give more emphasis on providing services, their operating costs tend to be high.

5. High advertisement cost:
The success and prosperity of a departmental store depends on advertisement. Therefore, it should spent large amount on advertisement.

6. Lack of effective control:
Departmental store works through a large number of departments. It creates so many problems.

7. High risk:
A departmental store keeps a large stock of goods. So changes in fashion, taste, price etc will affect the profitability of the business.

Chain Stores or Multiple Shops:
Multiple shop is a system of branch shops operated under a centralised management and dealing in similar line of goods. Branches are located through out the nation.
Features of multiple shops:

1. It deals in one or two lines of products.
2. All branches are dealing in similar goods
3. It has centralized management and unified system of control
4. It eliminates middlemen.
5. It works on cash and carry principle
6. It has centralized buying and decentralized selling.
7. There is uniformity in operation in all branches.
8. It deals in goods of daily use and durables.

Advantages:

1. It enjoys economies of bulk purchase because the goods for all branches are purchased by head office.
2. There is no risk of bad debts because all sales are on cash basis.
3. The advertisements for all branches are done by the head office. So there is economy in advertisement.
4. Multiple shops are located in towns and cities. They attract a large number of customers.
5. All branches of multiple shops are uniform in style, design and display of goods.
6. All the branches sell quality goods at uniform prices. It creates public confidence.
7. The economy in large scale buying, centralized management, etc. reduce the cost of operations.
8. Products having no demand in one branch can be transferred to another branch. It reduces business risk.
9. Multiple shops enjoy the benefits of quick turn over because of country wide location.

Limitations:

1. The multiple shops deal only in a limited range of products. So consumers have very little choice.
2. They will not provide any credit facilities to consumers.
3. There is lack of personal touch between the company and consumers because branches are managed by salaried managers.
4. Branch manager is only a salaried employee. He has no initiative to increase the profits.
5. As these shops deal in a limited line of goods, fall in demand will affect the business.

Difference between Departmental stores and Multiple shops:

Departmental store	Multiple shop
Located at the centre of big cities.	Locate near residential areas
Prices of articles may be different in departmental store	All the shops charge the same price.
High price	Comparatively low
Deals in all kinds of goods	Deals in limited line of goods
Offers credit facilities	Sell goods on cash basis
Requires more capital	Comparatively less capital is required.
Goods cannot be transferred from one department to another.	Goods can be transferred from one branch to another branch.
They deal in products of various manufactures.	They deal in products of only one manufacturer.
Operating costs is very high	Operating cost is comparatively low

Mail Order Houses/shopping by Post:
Mail order business is a form of retailing where the business transactions are done through post or mail. Under this system orders for goods, delivery of goods and payment is made through VPP (Value Payable Post).

Under this arrangement, the goods are delivered to the customers only on making full payment for the same. There is generally no direct personal contact between the buyers and the sellers in this type of trading.
This type of business is suitable for products that can be:

1. graded and standardised
2. easily transported at low cost
3. have ready demand in the market
4. are available in large quantity throughout the year
5. involve least possible competition in the market
6. can be described through pictures.

Bulky, heavy and perishable products are not suitable for this type of business.
Advantages:

1. It needs only limited capital because there is no need of building and other infra structural facilities.
2. Unnecessary middlemen between the buyers and sellers are eliminated.
3. Since the mail order houses do not extend credit facilities to the customers, there are no chances of any bad debt.
4. Under this system goods are delivered at the doorstep of the customers. This results in great convenience to the customers.
5. There is a wider scope for business.
6. It helps to avoid overstocking of goods as goods are collected only when the orders are received.

Disadvantages:

1. It has to spend a large amount for advertisement.
2. There is no direct personal contact between the buyer and the seller.
3. The buyer qannot inspect the goods personally before purchasing.
4. They are not suitable for heavy and perishable goods.
5. They do not provide credit facilities to customers.
6. There may be delay in getting goods.

Consumer Cooperative Store:
It is a retail store formed by the consumers on the basis of principles of co-operation. Thses stores are owned and managed by consumers. They deal all types of consumer goods.
Features of Consumers Co-operative:

1. It is a voluntary association of consumers.
2. The liability of members is limited.
3. Consumers can purchase quality goods at lowest cost from these stores.
4. Democratic control is exercised.
5. It eliminates middlemen

Advantages:

1. Consumers can purchase quality goods at lowest cost from consumers co-operative store.
2. There is no bad debts as goods are sold on cash basis.
3. Economies of large scale purchasing can be enjoyed.
4. Less advertisement expenses are required.
5. It restricts monopoly and wasteful competition.

Disadvantages:

1. A consumer co-operative store can collect low capital. So they cannot start business on a large scale.
2. The management of a consumer co-operative store is inefficient.
3. It lacks proper warehousing facilities.
4. It will not attract consumers because of no credit facilities.

Supermarkets/Super Bazaar:
Supermarket is a large scale retail organisation selling a wide variety of consumer goods. The important feature of supermarket is the absence of salesman to help consumers in selecting goods. Hence supermarket is also called ‘Self Service Store’.
Features of Super Market:

1. They are located at the centre of a town.
2. They sell goods on cash basis only.
3. They deal wide variety of goods.
4. There is no salesman to help consumers

Advantages:

1. Consumers can purchase everything from supermarket
2. There is no bad debt as sales are on cash basis only.
3. They are located at the centre of a town.
4. It attracts a large number of consumers.
5. Consumers can select goods according to their taste and preferences.
6. Variety of goods is available in a supermarket.

Disadvantages:

1. Large premises at central location is not available easily.
2. It lacks personal advice of salesman
3. They do not provide credit facilities to customers.
4. The employees in a supermarket do not take initiative to increase sales.
5. It requires huge capital investment.
6. It is not suitable for products which require personal selling.
7. There is no personal contact with consumers.

Vending Machines:
They are coin operated machines which are used in selling several products such as milk, soft drinks, chocolates, platform tickets etc in many countries. The latest area in which this concept is getting popular is the cpse of Automated Teller Machines (ATM) in the banking service.

However, the installation cost and expenditure on regular maintenance and repair of these machines are quite high. Moreover, the consumers can neither see the product before buying nor can return the unwanted goods.

Role of Chambers of Commerce and Industry in Promotion of Internal Trade:
Association of business and industrial houses are formed to promote and protect their common interest and goals. They undertake following functions.

1. The chamber of commerce and Industry help in the inter-state movement of goods through various activities.
2. They ensure that imposition of octroi and other local taxes do not affect trade adversely.
3. They also undertake marketing of agro products and related issues.
4. They interact with the Government to make laws relating to weights and measures and protection of brands.
5. They discuss with government to get sound infrastructure so that business activities could be undertaken easily

Students can Download Chapter 9 Small Business Notes, Plus One Business Studies Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Notes Chapter 9 Small Business

Contents

• Small business – Meaning and Nature – administrative setup – Role of Small Business in India – Problems of Small Business
• Government assistance to small industries- Institutional support
• NABARD
• RSBDC
• NSIC
• SIDBI
• NCEUS
• RWED
• WASME
• SFURTI
• DIC
• Government assistance to small industries – Incentives

Types of Small business units in India:
On the basis of the capital invested, small business units can be categorized into various categories.
They are:
1. Small scale industry:
A small scale industrial undertaking is defined as one in which the investment in fixed assets of plant and machinery does not exceed rupees one crore.

2. Ancillary small industrial unit:
An ancillary industrial unit is one which supplies not less than 50% of its output to another parental unit. It can manufacture parts, components, subassemblies, tools or intermediate products for the parent unit. Also it can do business on its own.

3. Export oriented units:
Export-Oriented unit is one which exports more than 50% of its output and wherein investment in plant and machinery does not exceed rupees one core.

4. Small scale industries owned and managed by women entrepreneurs:
An enterprise promoted by women entrepreneurs is a small scale industrial unit in which she/they individually or jointly have share capital of not less than 51 percent. Such units gets concessions offered by the government, like low interest rates on loans, etc.

5. Tiny Industrial Unit:
A tiny unit is defined as an industrial or business enterprise whose investment in plant and machinery is not more than ₹ 25lakhs.

6. Small scale service and business enterprise:
It is one whose investment in fixed assets of plant and machinery excluding land and building does not exceed ₹ 10 lakhs.

7. Micro business enterprises:
Micro enterprises are those whose investment in plant and machinery does not exceed rupees one lakh.

8. Village industries:
Village Industry has been defined as means any industry located in a rural area which produces any goods, renders any service with or without the use of power and in which fixed capital investment per head does not exceeds ₹ 50,000.

9. Cottage industries:
cottage industries are characterised by certain features

• These are organised by individuals, with private resources;
• Normally use family labour and locally available talent;
• The equipment used is simple
• Capital investment is small
• Produce simple products, normally in their own premises;
• Production of goods using indigenous technology.

Administrative setup for the Small scale, Agro and Rural Industries:
For the promotion and development of small scale industries in India, Government created two ministries, i.e
1. Ministry of Small Scale Industries:
The Ministry of Small Scale Industries designs policies, programmes, and schemes for the promotion and growth of SSIs. The Small Industries Development Organisation (SIDO) is responsible for implementing and monitoring of various policies and programmes formulated.

2. Ministry of Agro and Rural Industries:
Ministry of Agro and Rural Industries is the nodal agency for coordination and development of Village and Khadi industries, tiny and micro enterprises in both urban and rural areas.

Various programs and policies are implemented by the ministry through the Khadi and Village Industries Commission (KVIC), Handicrafts Board, Coir Board, Silk Board etc.

State Governments also provide different promotional and developmental projects and schemes to provide a number of supporting incentives for development and promotion of SSIs. These are executed through the State Directorate of Industries and District Industries Centres (DICs).

Role of small business in India:

1. Small industries are labour intensive and less capital intensive. They generate more number of employment opportunities.
2. The share of product from small industries is 45% of total export from India. So it earn valuable foreign exchange
3. Small scale Industries produces a wide variety of goods e.g. readymade garments, stationery, soaps, leather goods, plastic and rubber goods.
4. The contribution of small industries to the balanced regional development of the country is very significant.
5. Small industries provide ample opportunity for entrepreneurship.
6. It enjoys the advantage of low cost of production because they used local resources in their product.
7. Due to the small size of the organisation, quick and timely decisions can be taken without consulting many people.
8. Small industries are best suited for the products which are designed according to the taste, needs and preferences of the customers.
9. Small industries maintain good personal relations with both customers and employees.

Role of small business in Rural India:

1. Cottage and rural industries provide employment opportunities in the rural areas especially for the traditional artisans and the weaker sections of society.
2. It prevents migration of rural population to urban areas in search of employment.
3. Small business helps to eradicate poverty, income inequalities etc in rural area.
4. Small scale industries are powerful instrument for the accelerated industrial growth and creating productive employment in rural and backward areas.

Problems of small business:
Small businesses are faced with the following problems.

1. Small scale industries find it difficult to get adequate finance from banks and other financial institutions.

2. They are not able to get quality raw materials at reasonable prices.

3. Small business is generally operated by people who may not have all the managerial skills required to run the business.

4. Small business firms cannot afford to pay higher salaries to the employees. So productivity per employee is relatively low and employee turnover is generally high.

5. Small business depends excessively on middlemen for marketing the products. Middlemen exploit them by paying low price and delayed payments.

6. Small business organization uses out dated technology to produce products. So they cannot compete with global enterprises with low quality products.

7. Due to lack of marketing skills or lack of demand, many small business firms have to operate below full capacity.

8. Use of outdated technology results low productivity and uneconomical production.

9. Small-scale units find it very difficult to compete .with the product of multinational companies which are comparatively very cheap and of better quality

10. Other important problems are poor project planning, inefficient management, transportation problems, lack of power, and lack of adequate warehousing, etc.

Government assistance to small Industries and Small Business:
A. Institutional Support:
1. National Bank for Agriculture and Rural Development (NABARD):
NABARD was set up in 1982 to promote integrated rural development.
Functions of NABARD:

• It provides financial support to small Industries, cottage and village industries and agriculture.
• It provides counseling and consultancy services.
• It also organises training and development programme for rural entrepreneurs.

2. The Rural Small Business Development Centre (RSBDC:
It aims at providing management and technical support to current and prospective micro and small entrepreneurs in rural areas. RSBDC has organized several programmes on rural entrepreneurship, skill upgradation workshops, training programmes etc.

3. National small Industries Corporation (NSIC):
This was set up in 1955 to promote, aid and foster the growth of small scale units in India.
Functions of NSIC:

• It supplies imported machines and raw materials to small scale industries on easy hire-purchase schemes.
• It exports the products of small units.
• It provides technology to small scale Industries.
• Helps in up-gradation of technology
• Provides advisory service
• Developing software technology parks and technology transfer centres.

4. Small Industries Development Bank of India (SIDBI):
SIDBI was set up in 1980. SIDBI is the main financial Institution for financing and development of small Business in India.
Functions of SIDBI.

• Helps SSI unit for modernisation and technology upgradation by providing loan
• Meet working capital requirements of SSI.
• Provides means forthe rehabilitation of sick units
• Provides service like leasing, hire purchase, venture capital financing etc.
• Provide equity support to small entrepreneurs.

5. The National Commission for Enterprises in the Unorganised Sector (NCEUS):
The NCEUS was constituted in September, 2004, with the following objectives.

• To recommend measures for improving the productivity of small enterprises
• To generate more employment opportunities in rural areas
• To enhance the competitiveness of the sector in the emerging global environment.
• To link the sector with other institutions in the areas of credit, raw materials, infrastructure, technology upgradation etc.

6. Rural and Women Entrepreneurship Development (RWED):
RWE provides the following services.

• Creating a business environment that encourages initiatives of rural and women entrepreneurs.
• Enhancing the human and institutional capacities required to foster entrepreneurial dynamism and enhance productivity.
• Providing training manuals for women entrepreneurs and training them.
• Rendering all types of advisory services.

7. World Association for Small and Medium Enterprises (WASME):
It is the only International Non-Governmental Organisation of micro, small and medium enterprises based in India, which set up an International Committee for Rural Industrialisation. Its aim is to develop an action plan model for sustained growth of rural enterprises.

There are several schemes to promote the non-farm sector initiated by the Government of India, i.e. IRDP, PMRY, TRYSEM, JRY, Development of Women and Children in Rural Areas (DWCRA) etc.

8. Scheme of Fund for Regeneration of Traditional Industries (SFURTI):
To make the traditional industries more productive and competitive, the Central Government set up a fund with ₹ 100 crores. The main objectives of the scheme are as follows:

• To develop clusters of traditional industries in various parts of the country
• To make traditional industries competitive, profitable and sustainable
• To create employment opportunities in traditional industries.

9. The District Industries Centers (DICs):
DICs were established in May 1978. District Industries Centers is the institution at the district level which provides all the services and support facilities to the entrepreneurs for setting up small and village industries.

Identification of suitable schemes, preparation of feasibility reports, arranging for credit, machinery and equipment, provision of raw materials and other extension services are the main activities undertaken by these centers.

B. Incentives:
The incentives offered by the government to develop backward areas are:

1. Availability of land at concessional rate.
2. Supply power at a concessional rate of 50% or exempt such units from payment in the initial years.
3. Water is supplied on a no-profit, no-loss basis or with 50 percent concession or exemption from water charges for a period of 5 years.
4. All union territories, industries are exempted from sales tax,
5. Most states have abolished octroi.
6. Units located in backward areas get scarce raw materials at concessional rates.
7. Subsidy of 10-15% for building capital assets. Loans are offered at concessional rates.
8. Some states encourage setting up of industrial estates in backward areas.
9. Exemption from paying taxes for 5 or 10 years is given to industries established in backward, hilly and tribal areas.

Students can Download Chapter 9 Mechanical Properties of Solids Notes, Plus One Physics Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Physics Notes Chapter 9 Mechanical Properties of Solids

Summary
Introduction
Elasticity:
The property of a material by virtue of which it regains its original shape on the removal of the deforming force is called elasticity. The deformation caused is known as elastic deformation.

Plasticity:
The property of a material by virtue of which it does not regain its original shape on the removal of the deforming force is called plasticity. The substance which shows this property is called plastic.

Elastic Behavior Of Solids
In a solid, each atoms (or molecule) is surrounded by neighboring atoms (or molecules). These atoms are bonded by inter atomic forces. When a solid is deformed, the atoms are displaced from their equilibrium positions. When the deforming force is removed, the interatomic force bring back atoms into its original position. Thus body regains its original shape and size.

Stress And Strain Stress
It is the restoring force developed per unit area of cross section

S.I unit of stress is Nm² or Pascal (Pa) and its dimensional formula is [ML^-1 T^-2]. The restoring force is equal and opposite to the external applied force.
Strain:
The effect of stress on a body is called strain. Strain is measured as the ratio of the change in dimension produced to the original dimension.

Different types of Stress and Strain:
There are three ways in which a solid may change its dimensions when an external force acts on it. Hence there are three types of stress and corresponding strain.

1. Tensile Stress and Longitudinal Strain:
When the forces acting on the body produces an elongation along its length, then we call the stress as tensile stress (see figure).

When the forces acting on the body produces a compression along its length, then we call the stress as compressive stress. The tensile stress produces a change in the length (∆L). Hence the longitudinal strain can be written as
Longitudinal strain = \(\frac{\text { Change in length }}{\text { Original length }}\)
Longitudinal strain = \(\frac{\Delta \mathrm{L}}{\mathrm{L}}\)
Where ‘L’ is the original length.

2. Tangential (or) Shearing Stress and Shearing Strain:

If two equal and opposite deforming forces are applied parallel to cross-sectional area of the cylinder as shown in figure, there is a relative displacement between the opposite faces of the cylinder. The restoring force per unit area developed due to the applied tangential force is known as tangential or shearing stress.

As a result of applied tangential force, there is a relative displacement between opposite faces of the cylinder (see figure). The strain so produced is known a shearing strain. Shearing strain can be written as,

Where θ is the angular displacement of the cylinder from the vertical (original position of the cylinder). Since θ is very small, tanθ ≈ θ.

3. Hydraulic Stress and Volume Strain:

Consider a solid placed inside the fluid. The force applied by the fluid acts in perpendicular direction at each point of the surface. This leads to decrease in its volume without any change of its geometrical shape.

The internal restoring force per unit area in this case is known as hydraulic stress. The strain produced by a hydraulic pressure is called volume strain. The volume stress can be written as
Volume strain = \(\frac{\text { Change in volume }}{\text { Original volume }}=\frac{\Delta \mathrm{V}}{\mathrm{V}}\)
Note: Hydraulic Stress is equal to the hydraulic pressure.

Hooke’S Law
Hooke’s law:
For small deformations, the stress and strain are proportional to each other, ie: stress ∝ strain. Stress = k × strain Where k is the proportionality constant and is known as modulus of elasticity.

Stress Strain Curve

A typical graph for stress – strain graph for a metal is given in the figure.
Region OA:
In the region between O to A, the curve is linear. Hence in this region Hooke’s law is obeyed. The body regains its original dimensions when the applied force is removed. In this region the material behaves as an elastic body.

Region AB:
In this region stress and strain are not proportional. The material returns to its original dimension when the applied force (stress) is removed. The point B in the curve is known as yield point (also known as elastic limit) and corresponding stress is yield strength of the material.

Region BD:
If the applied force exceeds the yield strength, strain increases rapidly for a small change in the stress. When the applied force (stress) is removed at ‘C’, the body does not regain it’s original dimension, (even when the stress is zero, the strain is not zero).

This deformation is said to be plastic deformation and the material is said to have a permanent set. The point D on the graph is the ultimate tensile strength of the material.

Region DE:
Beyond this point D, additional strain is produced even by a reduced applied force and fracture occurs at the point E. The point E is called fracture point. If the ultimate strength (D) and fracture point (E) are close, the material is said to be brittle. If they are far apart, the material is said to be ductile.

Elastomers:
For rubber like materials, even for a small stress, the strain produced will be very high. Such materials are called elastomers.

There is no plastic flow region in the curves for elastomer materials. The elastic tissues of our blood vessel (aorta) is another example for elastomer.
Note: elastomer materials do not obey Hooke’s law.

Elastic Moduli
According to Hooke’s law

where k is called modulus of elasticity.
Depending on different types of stress and strain, there are 3 types of modulus of elasticity.
Different types of modulus of elasticity

1. Young’s modulus (Y)
2. Shear modulus (G)
3. Bulk modulus (B)

1. Youngs Modulus:
Young’s modulus is defined as the ratio of tensile stress (α) to the longitudinal strain (ε).
ie; Youngs modulus Y = \(\frac{\text { tensile stress }}{\text { longitudinal strain }}\)
Y = \(\frac{\alpha}{\varepsilon}\)
Explanation:
Consider a wire of length L and area of cross section a, fixed at one end and loaded at the free end with a weight mg. Let l be the elongation. Then tensile strain α = \(\frac{F}{a}\)
Longitudinal strain ε = \(\frac{l}{L}\)

2. Determination of youngs modulus of the material of a wire:
Experimental setup:

An experimental arrangement to determine the young’s modulus of a wire is shown in the figure. It consists of two long straight wires A and B. (The wire Ais called reference wire and B is called experimental wire).

A millimeter scale (main scale) is fixed near to the wire A. At bottom of wire A there is a pan to place a weight. The wire B also carries a pan in which known weights can be placed. At bottom of wire B, there is a pointer. A vernier scale is attached to this pointer. This vernier scale of B and main scale of A are placed very close to each other.

Determination of Young’s modulus:
Keep the wires (A and B) as straight by placing sufficient load at pans and note down initial reading. Then the experimental wire (B) is loaded with more weights. Note down the reading again. The difference between initial reading and final reading gives the elongation.

Let rand L be the initial radius and length of the experimental wire, then the area of cross section of the wire is πr². Let µ be the mass that
produced an elongation ∆L in the wire.

3. Shear Modulus:

The ratio of shearing stress to the corresponding shearing strain is called the shear modulus of the material (represented by G). It is also called the modulus of rigidity.

But from figure tanθ = \(\frac{\Delta x}{L}\) = tanθ ≈ θ
∴ G = \(\frac{F}{A \theta}\) The shearing stress α_s can also be expressed as α_s = Gθ.

4. Bulk modulus (B):
When a body is immersed in a fluid, it undergoes a hydraulic stress (equal in magnitude to the hydraulic pressure.) This leads to the decrease in the volume of the body. This decrease in volume produces a strain is called volume strain.

The ratio of hydraulic stress to the corresponding hydraulic strain is called the bulk modulus. It is denoted by symbol B. ie; Bulk modulus

The minus sign indicates the fact that with an increase in pressure, a decrease in volume • occurs. S.l. unit of bulk modulus is the same as that of pressure ie; Nm^-2 (or) Pa.
Compressibility (k):
The reciprocal of the bulk modulus is called
compressibility, k = \(\frac{1}{B}\)
Note: Bulk modulus of solids > Bulk modulus of liquid > Bulk modulus of gases.

Question 1.
Solids are least compressible but gases are most compressible. Why?
Answer:
The molecules in solids are strongly coupled with neighboring atoms. But molecules in gases are very poorly coupled to their neighbors.

5. Poisson’S Ratio
When a wire is subjected to an extension along its length there will be contraction perpendicular to the length. The strain perpendicular to the applied force is called lateral strain. The strain parallel to the applied force is called longitudinal strain.

Within the elastic limit, lateral strain is directly proportional to the longitudinal strain. The ratio of the lateral strain to the longitudinal strain is called Poisson’s ratio.

If the original diameter of the wire is d and the contraction of the wire under stress is Dd, lateral strain = \(\frac{\Delta \mathrm{d}}{\mathrm{d}}\)
If the original length of the wire is L and the elongation under stress is DL, then

Poisson’s ratio is a ratio of two strains. Hence it is a pure number and has no units or dimensions.
For steel the value is between 0.28 and 0.30.

6. Elastic potential energy in a stretched wire:
When a wire is stretched, work is done against the inter molecular forces. This work is stored in the wire as elastic potential energy.

Consider a wire of length L and area of cross section stretched by a force F. Let l be the elongation. Then stretching force increases uniformly from 0 to F. Therefore the average force

Displacement of free end = l
∴ Workdone in stretching = F_av × l
= \(\frac{1}{2}\)Fl = \(\frac{1}{2}\) × Force × extension
This work is stored as the elastic potential energy of the wire
ie. U = \(\frac{1}{2}\) × Fl
Volume of wire =AL
Workdorie in stretching per unit volume, U = \(\frac{\frac{1}{2} F \ell}{A L}\)

Stress = Y × strain ______(3)
Sub(3) in (2)
U = 1/2 × Y × strain × strain
U = 1/2 × Y × (strain)².

Applications Of Elastic Behavior Of Materials

1. Metallic ropes are used in the cranes for lifting the load because of its high elasticity.
2. While designing bridges and buildings, beams and columns are widely used. Bending of beams and columns under a load depends upon the Young’s modulus of the material used. To reduce the bending of a beam for a given load, material with larger youngs modulus is to be used.
3. The maximum height of the mountain is limited by the elastic properties of the rock which hold the mountain.

Question 2.
Find the radius of the rope that used to lift 10 tons(10000Kg). Elastic limit (maximum stress) of steel is 30 × 10⁷ N/m²
Answer:
The condition to withstand a force of 100 metric ton,

Question 3.
What is meant by buckling?

Answer:
If the load is not properly placed on a beam, the beam will bend side wise as shown in figure. This bending is called buckling.

Question 4.
Why the beams used in construction of bridges have a cross-section of the type I?
Answer:
Consider a solid rectangular beam of length l, breadth b and thickness d. If we place a load Mg at its centre, there will be a depression at the centre.

To reduce the depression at the centre, we have to increase d. But when d is large the beam will buckle unless the load is at the centre. This buckling can be avoided if the beam is given the section of the letter I. Such a beam is called I form girder.
It has following advantages

• It reduces the weight of the beam
• It saves material
• It prevents buckling

Question 5.
Find the height of mountain from the data given below. Maximum shearing stress = 30 × 10⁷ N/m² Density of material of mountain = 3 × 10³ Kgm^-3
Answer:
The force per unit area due to the weight of the mountain (at a depth h) is hrg. The material at the bottom experiences this force. The sides of the mountain are free. Hence the shear component is (hrg) itself.
∴ Shearing stress = hrg
30 × 10⁷ = h × 3 × 10³ × 10
h = 10 km
which is more than the height of Mount Everest.

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Plus One Accountancy Accounting System Using Database Management System One Mark Questions and Answers

Question 1.
Reports, the need for which is not anticipated is called_______reports.
Answer:
Casual

Question 2.
_______query does not involve use of any query function to produce a summary of data.
Answer:
Simple

Question 3.
_______query prompts the user to enter criteria for selecting a set of records.
Answer:
Parameter

Question 4.
______clause is used to specify the fields to display data or information.
Answer:
SELECT

Question 5.
______is meant to include page number, data and time of report.
Answer:
Design view

Question 6.
The purpose of______is to organise the information of report into categories whereas______arranges information into numerical or alphabetical order.
Answer:
Sorting, sorting order

Question 7.
When saved as_______,the contents of reports can not be modified by the user.
Answer:
Snap shot

Plus One Accountancy Accounting System Using Database Management System Two Mark Questions and Answers

Question 1.
List out the ways in which quarries may be created in MS-access.
Answer:

1. Wizard method
2. Design method
3. SQL view method

Question 2.
List the structure of a good report created in Access.
Answer:
A good report created in Access may be designed using seven sections which taken together constitutes the structure of report design. The structure of a good report should have the following sections in it.

1. Report Header
2. Page Header
3. Group Header
4. Details
5. Group Footer
6. Page Footer
7. Report Footer

Question 3.
List the ways to refine the design of a report.
Answer:
The design of the report created by any methods can be improved upon by making the following additions and modifications to the report.

1. Adding Dates and Page Numbers
2. Adding and Deleting Report Controls
3. Conditionally Formatting Report Controls
4. Grouping Levels and Sorting Order

Question 4.
What do you understand by saving a report as snap-shot?
Answer:
When a report is created it become important to save it in such a manner so that it can be viewed whenever the user feel like doing so. In this context through a snapshot a report may be saved in such a manner so as to be viewed by others without the help of Access. This becomes possible by saving the report as a snapshot file.

As a result, a high quality picture image of each page of report is created with Adobe Acrobat sofware. Other users of the report can then view the report and print any of its pages without being able to modify its contents.

Plus One Accountancy Accounting System Using Database Management System Three Mark Questions and Answers

Question 1.
State what do you understand by accounting reports?
Answer:
An accounting report is basically the physical form of accounting information. Accounting reports are reports which display information that is acquired from data processing and transformed in an organised manner. Here it is worth mentioning that a report is prepared with a definite objective.

Every report is a collection of related information for a particular need and purpose and must meet the twin objectives of reporting; First to reduce the level of uncertainty that is faced by a decision-maker; second to influence the behaviour (or positive actions) of the decision-maker.
Reports can be classified into two broad categories.

Question 2.
Discuss the capabilities of MS Access
Answer:
Capabilities of MS Access are as follows:

1. Storing the data in an organised manner.
2. Enforcing data integrity constraints.
3. Representing complex relationship among data.
4. Restricting unauthorised assess to database.
5. Allowing fast retrieval of data with or without processing by using SQL.
6. Flexibility to create multiple user interface.

Question 3.
What do you mean by Query in Access. Name the types of queries.
Answer:
A query is a request for data or information from a database table. This data may be generated as results returned by structured query language (SQL) or as pictorials, graphic or complex results.
A query is used to extract data from a database in a readable format according to the users request.
Types of queries:
There are several types of queries in access that are used to generate information. Such queries are called “select queries” because they are used to “select” records with a given set of fileds. There are three types of queries.

1. Simple query
2. Parameter queries
3. Summary queries

Question 4.
With the help of an example, briefly state the meaning of parameter queries.
Answer:
A parameter Query is a query that asks you for one or more pieces of information before displaying the data sheet. A parameter query prompts the user to enter Parameters, or criteria through an input box, for selecting a set of records.

A parameter query is useful when there is a need to repeat the same query with different criteria. The criteria, is not constant as in the case of the simple query. While extracting the transactions to prepare ledger accounts, the same set of queries need to be executed for different account codes. Consider the following SQL statement.

In the above query, the PARAMETERS clause is meant to declare the variable Account No. This SQL statement, when executed, prompts the user to provide the value of Account No.

Question 5.
Briefly state the purpose of functions in SQL environment.
Answer:
SQL (Structured Query Language) is the most popular query language for relational DBMS, and most of the commercial relational database management system use SQL or a variant of SQL.

The original version of SQL was called SEQUEL. SEQUEL is a relational Query Language based on neither relational algebra nor relational calculus. It is a non-procedural language where the concept of universal quantifiers is not used.

A block-structured format of English key words is used in this query language. It is intended for interactive use by people who are not specialists in computers. There are three types of functions that are used in SQL statements.

Plus One Accountancy Accounting System Using Database Management System Four Mark Questions and Answers

Question 1.
What do you mean by programmed and casual reports?
Answer:
Accouting information, generated by processing accounting data is gathered to generate an accounting report. An accounting report, in order to be useful, must display information context in such a manner so as to give confidence to the user, influence his behaviour and prompt him to take positive action. Accounting reports can be classified into two broad categories ie. Programmed Report and Casual Report.
1. Programmed Reports:
Programmed reports are reports which contain information useful for decision making in those situations which the users have anticipated to occur. There are two types of reports within this report type.

a. Scheduled Reports:
The reports, which are produced according to a given time frame, are called scheduled reports. The time frame may be daily, weekly, monthly, quarterly or yearly. Some Statement of Cash transactions (Cash book), Statement of Ageing Accounts, Closing Stock Report, Profit and Loss Account and Balance Sheet, etc.

b. On-Demand Reports:
The reports, which are generated only on the triggering of some event, are called on demand reports. Some examples of an demand reports are a Customer’s Statement of Account, Inventory Reorder Report, Stock in hand Report for a Selected Group of items, etc.

2. Casual Reports:
Casual reports are those reports, the need for which is not anticipated, the information content of which may be useful but casually required. These adhoc reports and are generated casually by executing some simple queries without requiring much of professional assistance. As opposed to programmed reports, casual reports are generated as and when required.

Question 2.
Describe and discuss the procedure of creating the receipts side of a cash book.
Answer:
As it is known to all a Cash book is a type of accounting report. The procedure of creating the receipts side of cash book is same as reports generation. In the process of producing receipts side of a cash book, it is necessary to retrieve a set of processed data records which provide information on code (Account Number), Name of Account, Particulars and credit Balance with reference of each account where cash account is debited.

Receipt side of cash book deals with the cash receipts. In the process of creating receipts side we have to find out the amount and particulars of the transaction in which cash is received ie. cash account is debited. For creating it, first we have to find out these amounts and a particular set of SQL statement and save them into Database after giving particular name to each query.

After creating the SQL statement now we will start the process of MS Access Database. Select create report in design view and query (Last Saved). This respond to give blank report design dividend into three sections page header, detail and page footer and of available fields of Query.

Here, we design our report with the tools provided by Access like giving name to the report, defining its size and colour. After this we select the all fields from our Query and drag and drop them into the Detail section. By applying some arithmetical calculations provided by Access we get the receipt, side of cash book.

Plus One Accountancy Accounting System Using Database Management System Five Mark Questions and Answers

Question 1.
“MS-Access supports different data types”. What are the different data types?
Answer:
The following are the different data types:

1. Text: It is used for a string of character: Words or numbers that are not to be used in arithmetic calculations. The maximum length for a text field is 255 characters. It is the default data type. For example – Job name, Job department, Job type.
2. Memo: It is used for storing comments and is capable of accommodating 65,536 characters.
3. Number: It is meant to store numbers, which could be integers, long integers, bytes, single, double or decimal types. For example – Job unit, Job ID.
4. Date / Time: It is used to store dates, time or a combination of both. For example – Job time.
5. Currency: It is used for storing numbers in terms of Dollars, Rupees or other currencies.
6. Auto Number: It is a numeric data automatically entered by access.
7. Yes / No: It is to declare a logical field which may have only one of the two opposite values alternatively given as: Yes or No, On or Off, True or False.
8. OLE object: OLE stands for Object Linking and Embedding. It refers to an object that could be a photograph, barcode image or another document created in another software application.
9. Hyperlink: This data type is meant to store a Universal Resource Locator (URL) and e-mail addresses.

Question 2.
Briefly explain in steps the method of creating a query, using wizard.
Answer:
In order to create a query using Wizard, the following steps are required.
1. Select Queries from Objects list given in LHS (Left Hand Side) of Database window.

2. Double click at Create Query by Using Wizard given on the RHS (Right Hand Side). Immediately, there is a window titled ‘Simple Query Wizard’ that prompts the user to select a field from a table or an existing query that is to be included in the query being created. Many such fields may be selected according to the information requirement of the query.

The tables (or queries) being chosen represents the data source of the query being created. The fields being selected imply the data items to be displayed by the query. Use arrow buttons or double click at the list of fields on LHS of this window to select fields.

3. Click at Next after the desired fields have been selected. If the selected fields include a number or currency field, the designer is prompted to choose an option button to specify whether the query to be created is a summary or detail query.

• If details option is chosen, the execution of query results in displaying records from data source.
• If summary option is selected, the user is prompted to indicate the type of summarisation required: Sum, Average, Minimum and Maximum with respect to the field of summarisation. Clicking at check boxes against different types of summarisation specifies this. Click OK.

4. Click at Next and specify the name of the query being created % Finish to save and execute the query. The results of the query are displayed in datasheet view.

Question 3.
State the procedure for creating ledger in MS Access.
Answer:
Financial Accounting Reports can be generated in MS Access easily. Ledger is one of the financial reports through which accounting transactions are shown in a particular account, during a given period of time. A ledger contains eight columns as follows:

For creating a ledger in MS Access it is necessary to retrieve a set of processed data recordes each of which provide information code (Account Number), Name of Account, Particulars, Date Debit Balance and Credit Balance with reference to each particular account.

For creating Ledger in MS Access we have to take the following steps: First of all, we will selecte the Design View method to generate a Ledger as follows:
1. Select Reports from the object list in Database window.

2. Click at New Button. This displays the New Report Windows.

3. Select Design view and Query L from combo control.

4. Click OK,
Now, the Access will display a blank report which will be there in three sections as Page header, Detail, and Page Footer. The above blank report will be displayed horizontally. Now it will show a list of available fields of Query L for embedding on to this blank design report.

5. Now it’s time to Click at properties of report and select data tab to define the record sources as Query L. This gives a list of available fields of Query L.

6. Now page header and footer will be choose by clicking at the part of report design. As we click, access will provide two more sections ie. Page header and Page footer.

7. Now we will describe the specifications by clicking at the icon of toolbar and pick up a label control to be placed at Page Header section and assign set it caption property to (Account name), Font size to 12. Font colour to Back, Text align to left and Font weight to Bold.

8. Select all the fields of Query L by clicking at every field while keeping the Ctrl key pressed. Drag and Drop the selected field on Details Section.

9. Select the label control of all the six fields by clicking at each while keeping the shift key pressed. Right click at select label control and choose Cut. Place the mouse at Page Header Section and paste these Control.

10. Choose the properties provided by Access.

11. Align the test controls in Detail section.

12. Select the text controls and Amount field and modify their properties.

The above mentioned is the simple procedure through which we can create Ledger in MS Access.

Question 4.
Discuss with a set of inter-related data tables, the basics of creating queries in MS Access?
Answer:
It is a well know fact that Relational Database management system stores data in different table (relations) so that there is no or minimum data redundancy. But for a complete view of data stored across various tables is achieved only by executing Queries based on SQL. A query is capable of displaying record containing field from across a number of data tables.

In other words SQL has statement for data defini-tion, query and update. Besides this, it has the ca-pability to define user oriented views of database; specify security and authorisation, define integrity constraints and various other operations. Various SQL statements are used to create queries for inter-related data tables.

Some of the basics of creating queries in MS Access with a set of inter related data table are here with the help of the following statements.

If we talk about the above query the vouchers table has been joined with Accounts table on the basis of Code field of Accounts and Debit field of Vouchers. The result record set has been grouped on the basis of Code and name of accounts. The sum of amount of each group has been ascertaining and displayed.

We can take another example to understand it better:

In the above query, vouchers table, Account table and Account type table are joined on the basis of Debit Field, code field respectively to retrieve Code, Name, and Category of Expense account which have been debited.

Question 5.
Explain the data base design for Model-I for produc-ing the receipts the series of SQL statements for producing the payment side of cash book for Model- II.
Answer:
The following series of SQL Statement retrieve a record set of producing the payment side of cash . book of Model II.
1. SQL Statement

2. SQL Statement

3. SQL Statement

This SQL Statement is source as Query D1.

4. SQL Statement

This SQL Statement is saved as Query D2.

5. SQL Statement

Plus One Accountancy Accounting System Using Database Management System Six Mark Questions and Answers

Question 1.
Briefly explain the set of SQL statements to produce the receipts side of a cash book for ModeII.
Answer:
The following series of SQL statement retrieve a record set for producing the receipts side of cash book for ModeII.
1. To find the total amount by which the cash account is debited. In order to ascertain the total amount by which every transaction cash account has been debited, the following SQL statement is formed.

This SQL statement gives the code and amount from which cash is received. This SQL statement is saved as Query Cl.

2. To generate the total of Receipt side. The following SQL Statement is formed.

This SQL statement is save as Query C2.

3. To find the record set which consist of account code, Name of account, credit amount and date. The following SQL statement is formed.

Question 2.
Describe in steps the design view method to create a query in MS Access?
Answer:
Design Method:
In order to create a query by design method, the following steps are required.
1. Select Queries from Objects list given in LHS of database window. Double click at Create Query by Using Design View given on the RHS.

2. Access responds by displaying a Select Query and Show Tables Window. The select query window is vertically divided into two panes, upper pane and lower pane. The upper pane is meant to display data sources (Tables or Existing Queries) and the lower pane, which is also called Query By Example (QBE) grid, has one column each for field to be included in query being created.

The row of this grid shows field name, table (or query), sort order, whether the selected field is shown in the query results or not and also the criteria that have been applied to the field or fields to restrict the query results.

The Show Table Window is meant to add tables, queries or both to the upper pane of Select Query Window. If closed, the show Table Window can be recalled by a right click at upper pane % show table.

3. Click at View item of Menu bar % Total and then % Table Names.

4. Click at field row of first column of QBE grid to select the fields to be included in the query. The process is repeated for second and subsequent columns of grid to include more fields in the query. This process of selection constitutes the data items to be displayed by SELECT clause of SQL statement.

5. The name of table or query is displayed, in accordance with selection of fields. Such tables or queries constitute the data sources shown after FROM clauses of SQL statement. However, the initial selection a table/ query in the second row of QBE grid restricts the choice of fields to the selected table/query only.

6. Click at row of grid to specify the Group by clause and aggregate functions so that a summary query is created.

7. Click at row of grid to specify the sort order (Ascending or descending) on field(s). The selected fields for sort order are shown after ORDER BY clause of SQL statement in which ascending order is the choice of default.

8. Click at row to check for the selected field to be displayed in the query result. The field(s) may be selected only for the purpose of specifying the sort order or criteria.

9. Click at row ofthe grid to specify the criteria to limit the records to be displayed by the query being created. The specified criteria result in a conditional expression, which is shown after the WHERE clause of SQL statement.

10. Click File % Save (or Press Ctrl + S) to save a query. A dialog box prompts the user to specify the name of the query being created. By default a generic name appears which can be accepted or rewritten with a desired name.

Question 3.
Explain MS Access and its components.
Answer:
MS Access is one of the popularly used Database Management System (DBMS) to create, store and manage database. It is popularly called Access. Access is functionally available with the following seven object classes. Each of these object classes is capable of creating their respective object replicas.

1. Tables: This object class allows a database designer to create the data tables with their respective field names, data type, and properties.
2. Queries: The stored data is processed using the query facility to produce desired information.
3. Forms: This object class allows the designer to create an appropriate user interface to formally interact with back end database defined by the tables and queries.
4. Reports: This object class is used to create various reports. Such reports are designed in access according to the requirement of end user.
5. Pages: This object class is meant to create data access pages which can be posted on a website of an organisation using internet.
6. Macros: A macro is a list of macro-oriented actions that runs as a unit.
7. Modules: These are the foundation of any application and allow the designer to create a set of programming instructions called functions or sub-routines that can be used throughout the application.

Plus One Accountancy Accounting System Using Database Management System Eight Mark Questions and Answers

Question 1.
Discuss the SQL view method of creating a query.
Answer:
SQL View Method:
A query may be directly specified in Select Query Pane by a right click at table pane % SQL view. The upper and lower panes of selected query window are substituted by a pane to specify the SQL Statement that is written by using keyboard.

The desired SQL statement is directly okeyed in on this pane and saved in the same manner as described for design method. While forming the SQL statement, the following clauses are normally used for generating information (or Select) queries.

1. SELECT:
This clause is used to specify the fields to display data or information. Consider the following SQL statement segment.
SELECT code, Name, Amount
The fields Code, Name and Amount after SELECT clause indicate the data items to be displayed by the query statement.

2. FROM:
This clause is meant to indicate the source of data in terms of tables or queries or a combination of both. Two tables are joined by specifying a JOIN Clauuse based on a condition of Join. There can be three types of Join, Inner, Left and Right.

3. INNER:
This join clause is meant to display only exactly matching records between two data sources. Consider the following SQL statement segment.
FROM Accounts INNER JOIN Account Type
ON (Catld = Type)
In the above statement, only those records of Accounts and Account Type table constitute the source of query data, which match exactly on Catld = Type.

4. LEFT:
With this Join, all the records in the primary table in the relationship are displayed irrespective whether there are matching records in the related table or not. Consider the following SQL statement segment.
FROM Accounts LEFT JOIN Account Type
ON (Catld = Type)
In the above statement, all records of Accounts along with matching records of Account Type table constitute the source of query data, the matching condition is Catld = Type.

5. RIGHT:
With this join, all the records of related table in the relationship are displayed irrespective whether there are matching records in the primary table or not. Consider the following SQL statement.
FROM Accounts RIGHT JOIN Account Type
ON (Catld = Type)
In the above statement, all records of Account Type along with matching records of Accounts table constitute the source of query data. The matching condition is Catld = Type.

6. WHERE:
This clause in SQL statement is used to provide the condition to restrict the records to be returned by query. The resultant records of query must satisfy the condition which is specified after WHERE clause. This is meant to filter records returned by the query.

7. ORDER BY:
This clause is meant to specify the order in which the resultant records of query are required to appear. The basis of ordering is determined by the list of fields specified after the order by clause. Consider the following SQL statement segment.
ORDER BY Type, Code
The above statement in the context of Accounts table implies that the resultant record set is ordered by the Type field of Accounts and within Type, by Code field of Accounts.

8. GROUP BY:
The group by clause is used in the SQL statement to enable grouping of records for creating summary query. The fields after GROUP BY clause constitute the basis of grouping for owhich summary results are obtained. Consider the following SQL statement.

In the above SQL statement, the GROUP BY clause uses Debit account codes as the basis for computing the sum of amount of voucher. The total amount, by which every transacted account has been debited, is given by this SQL statement. In this statement, sum of amount is found for each group of records formed using GROUP BY clause.

Question 2.
Describe the series of SQL statements to produce trial balance data base design for Model-ll is used.
Answer:
Model II:
The following series of SQL statements retrieve the record set for producing trial balance when database design for Model-ll is used. In addition to this, the accounts have been categorised within the trial balance according to the Account Type: Expenses, Revenues, Assets, and Liabilities.

1. To find the Total Amount by which the Accounts have been Debited:
The transacted accounts in design of Model-ll have been stored in AccCode of Vouchers Main and Code of Vouchers Detail:
The following SQL statement is formed to generate the relevant information from Vouchers Details.

voucherMain.Vno= VouchersDetails.Vno

Similarly, the following SQL statement is formed to generate the required information from Vouchers Main table.


voucherMain.Vno= VouchersDetails.Vno
WHERE Type = 1
GROUP BY AccCode;
Both the SQL statements are meant to extract similar sets of records, but from different sources. Therefore, the resultant record set of these SQL statements have been horizontally merged using UNION clause as shown below.

The above SQL statement is saved as Query 101 for its subsequent use. The total of debit amount in this query represents the Total with positive amounts.

2. To find the Total Amount by which the accounts have been credited:
In order to ascertain the total amount by which every transacted account has been credited, a query similar to that in (a) need to be formed.

This is achieved by substituting Debitfield in SELECT and GROUP BY clause by Credit field and the sum of amount generated by sum(Amount) is multiplied by -1 so that the final amount assigned to Total field is always negative. Accordingly, the following SQL statement is formed.

In the above SQL statement, the sum of amount has been multiplied by -1 to ensure that the amount of credit is always negative just as amount of debit is taken as positive. This query is saved as Query 102 for its subsequent use.

3. To find a collective record set of Accounts with their Debit and Credit totals:
A collective record set is generated by forming a union query between Query 101 and Query 102 to ensure that the debit and credit amount with respect to each account becomes available for generating the net amount.
Accordingly, the following SQL statement is formed.

The above SQL statement causes horizontal merger of record sets returned by Query101 and Query102. This SQL statement is saved as Query103 for its subsequent use in next query.

4. To find the Net Amount with which an account has been Debited or Credited:
To generate the net amount, an SQL statement similar to Query04 (designed for query(d) of Model-1) above, is formed as shown below, except that its source of data is Query103 instead of Query03.

This query is save as Query104 for its subsequent use in generating a record set, giving details of information for trial balance.

5. To find the Record set which consists of Account Code, Name of Account Debit Amount and Credit Amount:
This query, which is meant to provide relevant information to the trial balance report, is similar to Query 05 (designed and discussed in (e) of Model-1). Accordingly, the following SQL statement is formed by changing the source of data from Query 05 to Query 105 as shown below.

In above SQL statement, the results of Query104 and data stored in accounts table has been used. This SQL statement is saved as Queryl05 for providing source of information to Trial Balance Report.

Trial Balance with Sorting and Grouping Levels:
In order to prepare a trial balance with all the account duly grouped by and sorted within category of accounts, two additional queries (vi) and (vii) are required.

6. To Find the Record Set of Accounts with their Category and Category ID:
Accounts table is related to Account Type table vide Type field. The following SQL statement, using INNER JOIN clause, is formed to retrieve the relevant fields of various accounts.
SELECT Accounts.Code, Accounts. Name, Category, Catld FROM Accounts
INNER JOIN AccountType ON
Accounts.Type = Account type.Catld;
This SQL statement is saved as Query 106 for its subsequent use in next query.

7. To Find the Record Set consisting of Account Code, Name of Account, Debit Amount and Credit Amount along with Category Details:
This query, when compared with (v) above, reveals that two additional fields Category and Catld are required. Accordingly, the SQL statement stored as Query105 is modified by substituting Accounts table with Query106 to form the following statement.

SELECT a.Code, b.name AS (Name of Account), IIF (a.Net>0, a.Net, null) AS Debit, IIF (a.Net<0, abs(a.Net), null) AS Credit, Category, Catld FROM Queryl 04 AS a. Query106 AS b WHERE a.code = b.code;
This SQL statement is saved as Query107 to provide information details for designing trial balance with grouping and sorting of the accounts.

Question 3.
Using Model-III discuss the series of SQL statements to produce a trial balance up to a particular date.
Answer:
The following series of SQL statement retrieves a record set for producing trial balance when data base is design for ModeII.
1. To find the total amount by which the account have been debited. The following SQL statement will be formed.

GROUP BY clause retrieves the rows of vouchers table accounts wise because the debit field refers to account code. This SQL statement is saved as Query 01. The total of debit amount in this query is given by total yield with positive amounts.

2. To find the total amount by which the accounts have been credited. The following SQL statement will be formed.

The sum of amount generated by Sum(amount) is multiplied by -1 so that the final amount assigned to total field is always negative. The purpose of using negative values is to differentiate between debit and credit totals for each account and also to facilitate the simple arithmetic summation for obtaining the net amount. This SQL statement is saved as Query 01.

3. To generate a collective record set of accounts with their debit and credit totals. Well this collective record set will be generated by executing a union query between Query01 and Query 02. The following SQL statement will be followed in this case.
SELECT*
FROM Query01
UNION SELECT*
FROM Query 02
This SQL statement is saved as Query 03.

4. To generate the net amount with which an account has been debited and credited. The following SQL statement will be formed
SELECT Code, Sum(Total) AS Net
FROM Query 03
GROUP BY Code
A positive net amount implies a debit and negative amount means a credit balance corresponding to an account code. This SQL statement is saved as Query 04 used in generating record set for trial balance.

5. To find that record set which consists of account code, name of account, debit amount and credit amount. The following SQL statement will be formed
SELECT a.Code, b. Name AS (Name of Account),
IIF (a.Net>0, a.Net, null) AS Debit,
IIF (a.Net>0, abs(a.Net), null) AS Credit,
FROM Query 04 AS a, Accounts ASb
WHERE a.code=b.code;
This SQL statement is saved as Query05 for providing the necessary information content for Trial Balance Report.

Students can Download Chapter 8 Sources of Business Finance Notes, Plus One Business Studies Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Notes Chapter 8 Sources of Business Finance

Contents

• Meaning, Nature and Significance of Business finance
• Equity shares – Features -Merits – Demerits
• Preference shares – Features – Types – Merits – Demerits
• Retained earnings – Features – Merits – Demerits
• Debentures – Features – Types – Merits – Demerits
• Public deposits – Features – Merits – Demerits
• Commercial Banks – Features – Merits – Demerits
• Financial institutions – Features – Merits – Demerits
• Trade credit – Features – Merits – Demerits
• Factoring – Features – Merits – Demerits
• Lease financing – Features – Merits – Demerits
• Commercial paper – Features – Merits – Demerits
• International financing – ADR – GDR – FCCB
• Factors affecting the choice of the source of fund Finance is the life blood of any business. The requirements of funds by business to carry out its various activities are called business finance.

Nature of Business Finance:
1. Fixed capital requirements:
In order to start a business funds are needed to purchase fixed assets like land and building, plant and machinery. This is called fixed capital requirement.

2. Working Capital requirements:
A business needs funds for its day to day operation. This is known as working Capital requirements. Working capital is required for purchase of raw materials, to pay salaries, wages, rent and taxes.

Classification of Sources of Funds:

1. Period Basis:
On the basis of period, the different sources of funds cari divided into 3. They are long-term sources, medium-term sources and short-term sources.
(a) Long Term Sources:
The amount of funds required by a business for more than five years is called long-term finance. Generally this type
of finance is required for the purchase of fixed assets like land and building, plant and machinery furniture etc. It include sources such as shares and debentures, long-term borrowings and loans from financial institutions.

(b) Medium Term Sources:
Where the funds are required for a period of more than one year but less than five years, is called medium-term sources. These sources include borrowings from commercial banks, public deposits, lease Financing and loans from financial institutions. This type of finance is required for modernization, renovation, special promotional programmes etc.

(c) Short Term Sources:
Short-term funds are those which are required for a period not exceeding one year. These sources include Trade credit, loans from commercial banks and commercial papers, etc. Short-term finance is used for financing of current assets such as accounts receivable and inventories.

2. Ownership Basis:
On the basis of ownership, the sources can be classified into ‘owner’s funds’and ‘borrowed funds’.
(a) Owners Fund:
It represent the amount of capital provided by owners and the amount of profit retained in the business. It is a permanent source of capital. Equity shares and retained earnings are the two important sources of ownership capital.

(b) Borrowed Funds:
It refers to funds mobilized from outsiders. It include loans from commercial banks, loans from financial institutions, issue of debentures, public deposits and trade credit.

Such sources provide funds for a specified period, on certain terms and conditions and have to be repaid with interest after the expiry of that period. Borrowed funds are provided on the security of some fixed assets.

3. Source of generation:
Another basis of categorising the sources of funds can be whether the funds are generated from within the organisation or from external sources.
(a) Internal sources:
Internal sources of funds are those that are generated from within the business. eg: ploughing back of profit, disposing of surplus stock etc.

(b) External sources:
External sources of funds are those that are generated from outside the business. eg: issue of debentures, borrowing from commercial banks and financial institutions and accepting public deposits.

SOURCES OF FINANCE:

• Issue of shares- (Equity and Preference Shares)
• Ploughing Back of Profit
• Issue of debentures
• Loan from Commercial bank
• Loan from Financial institutions
• Public deposits
• Lease Financing
• Long Term and Medium Term Sources of Finance
• Short Term Sources of Finance International Sources of Finance.

A business can raise funds from various sources. They are:

Issue of shares:
The capital of a company is divided into smaller units called share. Those who subscribe the shares of a company are known as ‘shareholders’. Two types shares may be issued by a company to raise capital. They are:

1. Equity Shares
2. Preference Shares

1. Equity Shares:
Equity shares represents the ownership capital of a company. They do not enjoy any preferential right in the matter of claim of dividend or repayment of capital. Equity share holders do not get a fixed dividend but are paid on the basis of earnings by the company. They bear the maximum risk. Equity shareholders are the owners of the company. They have right to vote and participate in the management.
Merits:

• Equity shares are suitable for investors who are willing to assume risk for higher returns
• Payment of equity dividend is not compulsory.
• Equity capital serves as permanent capital as it is to be repaid only at the time of liquidation of a company.
• Equity shares do not carry any charge on the assets of the company.
• They have right to vote and participate in the management.
• Equity capital provides credit worthiness to the company

Limitations:

1. Investors who want steady income may not prefer equity shares.
2. The cost of equity shares is generally more as compared to the cost of raising funds through other sources.
3. Issue of additional equity shares dilutes the voting power, and earnings of existing equity shareholders.
4. Issue of Equity shares is time consuming.

2. Preference Share:
The capital raised by issue of preference shares is called preference share capital. The preference shareholders enjoy a preferential right over equity shareholders in two ways:

• The right to get a fixed rate of dividend.
• The right to claim repayment of capital in the event of winding up of the company.

Preference shareholders generally do not enjoy any voting rights. A company can issue different types of preference shares.

Types of Preference Shares:
1. Cumulative and Non-cumulative Preference Share:
in cumulative preference shares, the unpaid dividends are accumulated and carried forward for payment in future years. On the other hand, in non- cumulative preference share, the dividend is not accumulated if it is not paid out of the current year’s profit.

2. Participating and Non-participating Preference Share:
Participating preference shares have a right to share the profit after making payment to the equity shares. The non-participating preference shares do not enjoy such a right.

3. Convertible and Non-convertible Preference Share:
The preference shares which can be converted into equity shares after a specified period of time are known as convertible preference share. Non-convertible shares cannot be converted into equity shares.

4. Redeemable and Irredeemable Preference Share:
Redeemable preference shares are those where the company undertakes to repay it after a specified period. Where the amount of the preference shares is refunded only at the time of liquidation, are known an irredeemable preference shares.
Merits:

1. Preference shares provide reasonably steady income in the form of fixed rate of return and safety of investment.
2. Preference shares are useful for those investors who want fixed rate of return with comparatively low risk
3. It does not affect the control of equity share holders because they have no voting right.
4. Preference shares do not create arty charge on the assets of the company.
5. They have a preferential right of repayment of capital over equity shareholders in the event of liquidation of a company.

Limitations:

1. Preference shareholders have no voting right.
2. The dividend paid is not deductible from profit for income tax.
3. These shares may not attract investors who are expecting higher returns.
4. The rate of dividend on preference shares is generally higher than the rate of interest on debentures.

Differences between Equity shares and Preference shares:

Equity Shares	Preference Shares
It is compulsory to issue these shares.	It is not compulsory to issue these shares
Rate of dividend varies according to the profits of the company	Rate of dividend is fixed
Face value is lower	Face value is higher
No priority in dividend and repayment of capital	Priority in dividend and repayment of capital
It cannot be redeemed	It can be redeemed
Risk is high	Risk is low
They have voting rights	They do not have voting rights
They can participate in the management	They can not participate in the management

Retained Earnings (Ploughing Back of Profit):
A company generally does not distribute all its earnings amongst the shareholders as dividends. A portion of the net earnings may be retained in the business for use in the future. This is known as retained earnings. It is a source of internal financing or self financing or ‘ploughing back of profits’.
Merits:

1. It is a permanent source of funds available to an organization
2. No costs in the form of interest, dividend or flotation cost.
3. It is more dependable than external sources.
4. There is no commitment to pay dividend.
5. It increases the financial strength and earning capacity of the business.
6. Control over the management of the company remains unaffected.
7. It does not require the security of assets.
8. It may lead to increase in the market price of the equity shares of a company

Limitations:

1. Retained profits cause dissatisfaction among the shareholder because they get low dividend.
2. It attract competition in the market
3. It may attract government regulations.
4. It leads the management to manipulate the value of shares
5. It is uncertain source of fund because it is available only when profits are high.

Debentures:
A debenture is a document issued by a company under its seal to acknowledge its debt. Debenture holders are, therefore, termed as creditors of the corrfpany. Debenture holders are paid a fixed rate of interest.
Types of Debentures:
1. Secured and Unsecured Debentures:
Secured (Mortgaged) debentures are debentures which are secured by a charge on the assets of the company. Unsecured (Simple or naked) debentures do not carry any charge or security on the assets of the company.

2. Registered and Bearer Debentures:
In the case registered debentures, the name, address and other details of the debenture holders are entitled in the books of the company. The debentures which are transferable by mere delivery are called bearer (Unsecured) debentures.

3. Convertible and Non-convertible Debentures:
Convertible debentures are those debentures that can be converted into equity shares afterthe expiry of a specified period. On the other hand, nonconvertible debentures are those which cannot be converted into equity shares.

4. First and Second:
Debentures that are repaid before other debentures are repaid are known as first debentures. The second debentures are those which are paid afterthe first debentures have been paid back.
Merits:

1. It. is preferred by investors who want fixed income at lesser risk
2. Debenture holder do not have voting right
3. Interest on Debentures is a tax deductable expense
4. It does not dilute control of equity shareholders on management
5. Debentures are less costly as compared to cost of preference shares.
6. They guarantee a fixed rate of interest
7. It enables the company to take the advantage of trading on equity.
8. The issue of debentures is suitable when the sales and earnings are relatively stable

Limitations:

1. It is not suitable for companies with unstable future earnings.
2. The company has to mortgage its assets to issue debentures.
3. Debenture holders do not enjoy any voting rights.
4. In case of redeemable debentures, the company has to make provisions for repayment on the specified date, even during periods of financial difficulty.
5. With the new issue of debentures, the company’s capability to further borrow funds reduces.

Differences between Shares and Debentures:

Shares	Debentures
Shareholders are the owners of the company	Debenture holders are the creditors of the company
Shareholders get dividends	Debenture holders get interest
Shareholders have voting right	Debenture holders have no voting right
No security is required to issue shares	Generally debentures are secured
Shares are not redeemable	Debentures are redeemable
Share capital is payable after paying all outside liabilities	Debenture holders have the priority of repayment over shareholders

Public Deposits:
The deposits that are raised by organisations directly from the public are known as public deposits. Rates of interest offered on public deposits are usually higher than those allowed by commercial banks.

Companies generally invite public deposits for a period up to three years. This is regulated by the R.B.I. and can not exceed 25% of its paid up share capital and reserves.
Merits:

1. The procedure for obtaining public deposits is simpler than share and Debenture.
2. Cost of public deposits is generally lower than the cost of borrowings from banks
3. Public deposits do not usually create any charge on the assets of the company
4. They do not have voting right therefore the control of the company is not diluted
5. Interest paid on public deposits is tax deductable.

Limitations:

1. New companies generally find it difficult to raise funds through public deposits
2. They are not secured.
3. They are costly as most Of the companies have to offer high interest.
4. It is an unreliable source of finance as the public may not respond when the company needs money

Commercial Banks:
Commercial Banks give loan and advances to business in the form of cash credit, overdraft, term loans, discounting of bills, letter of credit etc. Rate of interest on loan is fixed.
Merits:

1. Commercial Bank provide timely financial assistance to business.
2. Secrecy is maintained about loan taken from a Commercial Banks.
3. This is the easier source of finance as there is no need to issue prospectus and underwriting for raising funds.
4. Loan from a bank is a flexible source of finance.

Limitations:

1. Funds are generally available for short periods
2. Banks may ask for security of assets and personal sureties for sanctioning loan.
3. In some cases, difficult terms and conditions are imposed by banks for the grant of loan

Financial Institutions:
The state and central government have established many financial institutions to provide finance to companies. These institutions aim at promoting the industrial development of a country, these are also called ‘development Bank’.

These are IFCI, ICICI, IDBI and LIC, UTI. This source of financing is considered suitable when large funds for longer duration are required for expansion, reorganisation and modernisation of an enterprise.
Merits:

1. Financial Institution provide long term finance which is not provided by Commercial Bank
2. These institutions provide financial, managerial and technical advice and consultancy to business firms.
3. It increases the goodwill of the borrowing company in the capital market.
4. As repayment of loan can be made in easy installments, it does not prove to be much of a burden on the business.
5. The funds are made available even during periods of depression, when other sources of finance are not available.

Limitations:

1. The procedure for granting loan is time consuming due to rigid criteria and many formalities.
2. Financial Institution place restrictions on the powers of the borrowing company.
3. Financial institutions may have their nominees on the Board of Directors of the borrowing company thereby restricting the autonomy of the company.

Trade Credit:
Trade credit is a short term source of financing. The credit extended by one trader to another for purchasing goods or services is known as trade credit. The terms of trade credit vary from one industry to another and are specified on the invoice. Trade credit facilitates the traders to purchase goods without irpmediate payment.
Merits:

1. Trade credit is a convenient and continuous source of funds
2. It does not create any charge on the assets of the firm.
3. Trade credit may be readily available in case the credit worthiness of the customers is known to the seller
4. Trade credit needs to promote the sales of an organisation.

Limitations:

1. It may induce a firm to indulge in overtrading.
2. Only limited amount of funds can be generated through trade credit;
3. It is generally a costly source of funds as compared to other sources of fund.

Factoring:
Factoring is a method of raising short-term finance for the business in which the business can take advance money from the bank against the amount to be realised from the debtors. By this method, the firm shifts the responsibility of collecting the outstanding amount from the debtors on payment of a specified charge.

There are two methods of factoring-recourse and non-recourse. Under recourse factoring, the client is not protected against the risk of bad debts. Under non recourse factoring, full amount of invoice is paid to the client in the event of the debt becoming bad.
Merits:

1. Obtaining funds through factoring is cheaper than bank credit
2. Factoring provides steady cash inflow so that the company is able to meet its liabilities promptly.
3. It is flexible and ensures cash inflows from credit sales.
4. It does not create any charge on the assets of the firm;
5. The company can concentrate on important areas of business as the responsibility of credit control is shouldered by the factor.
6. Factors may give useful information about the credit standing of customers.

Limitations:

1. This source is expensive
2. The advance finance provided by the factor firm is generally available at a higher interest cost.
3. The factor is a third party to the customer who may not feel comfortable while dealing with it.

Lease Financing:
A lease is a contractual agreement whereby the owner of an asset (lessor) grants the right to use the asset to the other party (lessee). The lessor charges a periodic payment for renting of an asset for some specified period called lease rent.
Merits:

1. It enables the lessee to acquire the asset with a lower investment;
2. Lease rentals paid by the lessee are deductible for computing taxable profits;
3. It provides finance without diluting the ownership or control of business
4. The lease agreement does not affect the debt raising capacity of an enterprise;
5. Simple documentation makes it easierto finance assets.

Limitations:

1. A lease arrangement may impose certain restrictions on the use of assets.
2. The normal business operations may be affected in case the lease is not renewed.
3. The lessee never becomes the owner of the asset.

Commercial Paper(CP):
It is an unsecured promissory note issued by a firm to raise funds for a short period. The maturity period of commercial paper usually ranges from 90 days to 364 days. Being unsecured, only firms having good credit rating can issue the CP and its regulation comes under the purview of the Reserve Bank of India.
Merits:

1. A commercial paper does not contain any restrictive conditions;
2. As it is a freely transferable instrument, it has high liquidity;
3. A commercial paper provides a continuous source of funds.
4. They are cheaper than a bank loan.

Limitations:

1. Only financially sound and highly rated firms can raise money through commercial papers
2. The size of money that can be raised through commercial paper is limited
3. Commercial paper is an impersonal method of financing. Extending the maturity of a CP is not possible.
4. Issue of commercial paper is very closely regulated by the RBI guidelines.

International Financing:
1. Commercial Banks:
Commercial banks all over the world extend foreign currency loans for business purposes. Standard chartered is a major source of foreign currency loan to the Indian industry.

2. International Agencies and Development Banks:
A number of international agencies and development banks provide long and medium term loans and grants to promote the development of economically backward areas in the world. Eg. International Finance Corporation (IFC), EXIM Bank and Asian Development Bank.

3. International Capital Markets:
(a) Global Depository Receipts (GDR’s):
Uhder GDR, shares of the company are first converted into depository receipts by international banks. These depository receipts are denominated in US dollars. Then these depository receipts are offered for sale globally through foreign stock exchanges.

GDR is a negotiable instrument and can be traded freely like any other security. The holder of GDRs are entitled for dividend just like shareholders. But they do not enjoy the voting rights. Many Indian companies like ICICI, Wipro etc. have raised foreign capital through issue of GDRs.
Feature of GDR:

1. GDR can be listed and traded on a stock exchange of any foreign country other than America.
2. It is negotiable instrument.
3. A holder of GDR can convert it into the shares.
4. Holder gets dividends
5. Holder does not have voting rights.
6. Many Indian companies such as Reliance, Wipro and ICICI have issue GDR.

(b) American Depository Receipts (ADR’s):
The depository receipts issued by a company in the USA are known as American Depository Receipts.
Feature of ADR:

1. It can be issued only to American Citizens.
2. It can be listed and traded is American stock exchange.
3. Indian companies such as Infosys, Reliance issued ADR

Differences between ADR and GDR:

ADR	GDR
They issued and traded in USA	They issued and traded in European capital market
Both individual and institutional investors can make investment	Only institutional investors can make investment
It can be converted into shares and shares into ADR	Once converted into shares, it cannot be converted back
Legal and accounting costs are high	Legal and accounting costs are less

Foreign Currency Convertible Bonds (FCCB’s):
Foreign currency convertible bonds are equity linked debt securities that are to be converted into equity or depository receipts after a specific period.

The FCCB’s are issued in a foreign currency and carry a fixed interest rate. These are listed and traded in foreign stock exchange and similar to the debenture.
Factors affecting the choice of the source of funds:
The factors that affect the choice of source of finance are
1. Cost:
The cost of procurement of funds and cost of utilising the funds should be taken into account while deciding about the source of funds that will be used by an organization.

2. Financial strength and stability of operations:
In the choice of source of funds, business should be in a sound financial position so as to be able to repay the principal amount and interest on the borrowed amount. When the earnings of the organisation are not stable, it can issue equity shares to collect the fund.

3. Form of organisation and legal status:
The form of business organisation and status influences the choice of a source for raising money.

4. Purpose and time period:
Business should plan according to the time period for which the funds are required. A short-term need can be met through borrowing funds at low rate of interest through trade credit, commercial paper, etc. For long term finance, sources such as issue of shares and debentures are more appropriate.

5. Risk profile:
Business should evaluate each of the source of finance in terms of the risk involved.

6. Control:
business firm should choose a source keeping in mind the extent to which they are willing to share their control over business.

7. Effect on credit worthiness:
The dependence of business on certain sources may affect its credit worthiness in the market.

8. Flexibility and ease:
Another aspect affecting the choice of a source of finance is the flexibility and ease of obtaining funds.

9. Tax benefits:
Various sources may also be weighed in terms of theirtax benefits. For example, while the dividend on preference shares is not tax deductible, interest paid on debentures and loan is tax deductible.

Students can Download Chapter 1 The Living World Notes, Plus One Zoology Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Zoology Notes Chapter 1 The Living World

WHAT IS ‘LIVING’?
The features of living organisms are

Growth, reproduction, ability to sense environment etc.

All living organisms grow, increase the mass and increase the number of individuals are the characteristics of growth.

• In plants, growth by cell division occurs continuously throughout their life span.
• In animals, growth is seen only up to a certain age.
• Unicellular organisms also grow by cell division it can be seen in in-vitro cultures by simply counting the number of cells under the microscope.

Reproduction, likewise, is a characteristic of living organisms.

• In multicellular organisms, reproduction refers to the production of progeny possessing features more or less similar to those of parents.
• Fungi multiply and spread due to the millions of asexual spores they produce.
• In lower organisms like yeast and hydra reproduce by budding.
• In Planaria (flatworms) a fragmented organism regenerates the lost part of its body and becomes a new organism.
• The fungi, the filamentous algae, the protonema of mosses etc multiply by fragmentation.

Another characteristic of life is metabolism.

All living organisms are made of chemicals. These chemicals are constantly being made and changed into some other biomolecules. There are thousands of metabolic reactions occurring simultaneously inside all living organisms.

Metabolism is a defining feature of all living organisms without exception, isolated metabolic reactions in vitro are not living things but surely living reactions.

Hence Cellular organisation of the body is the defining feature of life forms

• All organisms, from the prokaryotes to the most complex eukaryotes can sense and respond to environmental cues.
• Photoperiod affects reproduction in seasonal breeders, both plants and animals.
• All organisms are ‘aware’ of their surroundings.
• Human being is the only organism who is aware of himself, i.e. self-consciousness.

Consciousness therefore, becomes the defining property of living organisms.

Living organisms are self-replicating, evolving and self-regulating interactive systems capable of responding to external stimuli. All living organisms are linked to one another by the sharing of the common genetic material, but to varying degrees.

DIVERSITY IN THE LIVING WORLD:

The number of species comes to the range between 1.7 – 1.8 million. This refers to biodiversity of organisms on earth.

Nomenclature:
There are millions of plants and animals in the world; their names need to be standardised all overthe world. This process is called nomenclature.

Identification:
Nomenclature or naming is only possible when the organism is described correctly and the name is attached to. This is identification.

For plants, scientific names are based on agreed principles and criteria, which are provided in International Code for Botanical Nomenclature (ICBN). For animals International Code of Zoological Nomenclature (ICZN). Biologists follow universally accepted principles to provide scientific names.

Each name has two components – the Generic name and the specific epithet. This type of naming with two components is called Binomial nomenclature. This was given by Carolus.

For example the scientific name of mango is written as Mangifera indica. In this name Mangifera represents the genus while indica, is a particular species, or a specific epithet Other universal rules of nomenclature are as follows:

1. Biological names are generally in Latin and written in italics.

2. The first word in a biological name represents the genus while the second is the specific

3. The first word denoting the genus starts with a capital letter while the specific epithet starts with a small letter

4. Name of the author appears after the specific epithet, eg: Mangifera indica Linn. It indicates that this species was first described by Linnaeus

Classification:
It is the process by which anything is grouped into categories based on some easily observable characters. Hence, based on characteristics, all living organisms can be classified into different taxa. This process of classification is taxonomy.

Hence, characterisation, identification, classification and nomenclature are the processes that are basic to taxonomy. Sytematics include identification, nomenclature and classification. It also takes into account evolutionary Ktogdom relationships between organisms.

The word systematics is derived from the Latin word ‘systems’ which means systematic arrangement of organisms. Linnaeus used Systems Naturae as the title of his publication.

TAXONOMIC CATEGORIES:
It involves hierarchy of steps that represents a rank or category. Since all categories together constitute the taxonomic hierarchy. Each category, referred to as a unit of classification termed as taxon Insects represent a group of organisms sharing common features like three pairs of jointed legs. It means insects are recognisable give the rank. Each rank or taxon represents a unit of classification.

Common categories as kingdom, phylum or division (for plants), class, order, family, genus and species. In the plant and animal kingdoms species is lowest category.This helps in identifying similarities and dissimilarities among the individuals of the same kind of organisms as well as of Other kinds of organisms.

Species:
The group of individual organisms with fundamental similarities are called species. The species distinguish from other closely related species based on the distinct morphological differences.

For example Mangifera indica, Solanum tuberosum (potato) and Panthera leo (lion). All the three names, indica, tuberosum and leo, represent the specific epithets, while the first words Mangifera, Solanum and Panthera are genera.

Genus:
Genus comprises a group of related species which has more common characters For example, potato, tomato and brinjal are three different species but all belong to the genus Solanum. Lion (Panthera leo), leopard (P pardus) and tiger (P. tigris) with several commodes features are all species of the genus Panthera.

Family:
Family, has a group of related genera with number of similarities. Families are characterised on the basis of both vegetative and reproductive features of plant species.

Solanum, Petunia and Datura are placed in the family Solanaceae. Genus Panthera, comprising lion, tiger, leopard is put along with genus, Fells (cats) in the family Felidae

Order:
Order is the assemblage of families which exhibit a few similar characters. The similar characters are less in number as compared to different genera included in a family.

Plant families like Convolvulaceae, Solanaceae are included in the order polymoniales mainly based on the floral characters. The animal order, Carnivora, includes families like Felidae and Cancidae.

Class:
This category includes related orders. For example, order Primata comprising monkey, gorilla and gibbon is placed in class Mammalia The order Carnivora that includes animals like tiger, cat and dog belongs to the Class Mammalia also.

Phylum:
It includes animals like fishes, amphibians, reptiles, birds along with mammals.

They have common features like presence of notochord and dorsal hollow neural system, are included in phylum Chordata.

In the case of plants, classes with a few similar characters are placed in the category called Division.

Kingdom:
All animals belonging to various phyla are assigned to the highest category called Kingdom Animalia The Kingdom Plantae, comprises all plants from various divisions.

The taxonomic categories starting with species and ends in kingdom are arranged in ascending order. From species to kingdom, the number of common characteristics goes on decreasing.

TAXONOMICAL AIDS:
The collection of specimens of plant and animal species is essential for taxonomic studies. These are also fundamental to systematics.

Herbarium:
It is a store house of collected plant specimens that are dried, pressed and preserved on sheets. These sheets are arranged according to a universally accepted system of classification. The descriptions on herbarium sheets, become a store house or repository for future use.

The herbarium sheets also carry a label providing information about date and place of collection. Herbaria also serve as quick referral systems in taxonomical studies.

Botanical Gardens:
These are the collections of living plants for reference. Plant species in these gardens are grown for identification purposes. and each plant is labelled indicating its botanical/scientific name and its family.

The famous botanical gardens are at Kew (England), Indian Botanical Garden, Howrah (India) and at National Botanical Research Institute, Lucknow (India).

Museum:
Museums have collections of preserved plant and animal specimens for study and reference. Specimens are preserved in the containers or jars in preservative solutions. Plant and animal specimens may also be preserved as dry specimens.

Insects are preserved in insect boxes after collecting, killing and pinning. Larger animals like birds and mammals are usually stuffed and preserved. Museums have collections of skeletons of animals also.

Zoological Parks:
These are the places where wild animals are kept in protected environments under human care that helps to learn about their food habits and behavior.

Key:
It is used for identification of plants and animals based on the similarities and dissimilarities. The keys are based on the contrasting characters in a pair called couplet. The choice made between two opposite options results in the acceptance and rejection.

Each statement in the key is called a lead. Separate taxonomic keys are required for each taxonomic category such as family, genus and species for identification purposes. Flora, manuals, monographs and catalogues help in correct identification.

Flora contains the actual account of habitat and distribution of plants of a given area.

Manuals are useful in providing information for identification of names of species found in an area.

Monographs contain information on any one taxon.

Students can Download Chapter 3 Motion in a Straight Line Notes, Plus One Physics Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Physics Notes Chapter 3 Motion in a Straight Line

Summary
Motion In A Straight Line
In this chapter, we shall learn how to describe motion. For this, we develop the concepts of velocity, acceleration and relative velocity. We also develop a set of simple equations called Kinematic equations.

• Motion: Motion is change in position of an object with time.
• Rectilinear motion: The motion along a straight line is called rectilinear motion.
• Point object: If the distance travelled by the body is very large compared with its size, the size of the body may be neglected. The body under such a condition may be taken as a point object. The point object can be represented by a point.

Example:

• The length of bus may be neglected compared with the length of the road it is running.
• The size of planet is ignored compared with the size of the orbit in which it is moving.

Position, Path Length And Displacement
1. Reference point, Frame of reference:
In order to specify position of object, we take reference point and a set of axes. Consider a rectangular coordinate system consisting of three mutually perpendicular axes, labelled x, y, and z axes. The point of intersection of these three axes is called origin (O) and serves as the reference point.

The coordinates (x, y, z) of an object describe the position of the object. To measure time, we place a clock in this coordinate system. This coordinate system along with a clock is called a frame of reference.

Straight-line motion in coordinate system

To describe the motion along a straight line we can choose x-axis. The position of a carat different time are given in the figure 3.1. The position to the right of 0 is taken as positive and to the left of 0 as negative. The position coordinates of point P and Q are +360m +240m. The position coordinate of R is-120m.

2. Path Length (Distance):
The total length of the path travelled by an object is called path length.
Explanation:
Consider a car moving along straight line. The positions of car at different time are given in the x-axis. (See figure 3.1)
Case-1:
The car moves from 0 to P. In this case the distance moved by car is OP = +360.
Case-2:
The car moves from 0 to P and then moves back from P to Q.
In this case, the distance travelled is OP + PQ = +360 + (+120) = +480m.

3. Displacement:
The distance between initial point and final point is called displacement.

OR

The change of position of the particle in a particular direction is called displacement.
Explanation:
Consider a car moving along a straight line. The positions of car at different time is given in the x-axis.
See figure (3.1)
Let us take two cases
Case-1:
The car moves from 0 to P, in this case displacement = (360 – 0) = 360
Case-2:
The car moves from 0 to P and moves back from P to Q.
In this case,
Displacement = 240m
Let x₁ and x₂ be the positions of an object at time t₁ and t₂. Then displacement in time Dt = (t₂ – t₁) can be written as Dx = x₂ – x₁
If x₁ < x₂, Dx is positive and if x₂ < x₁, Dx is negative.
Note: The magnitude of displacement may or may not be equal to the path length traversed by an object.

4. Position Time Graph:
Motion of an object can be represented by a position-time graph.
Position time graph for a stationary object:
For a stationary object, the position does not change with time. Hence the position time graph will be a straight line parallel to time axis.

Position time graph in a uniform motion:
Uniform motion:
A body is said to be uniform motion, if it undergoes equal displacements in equal intervals of time. In uniform motion velocity is constant The figure below shows the positiontime graph of such a motion.

Question 1.
The position-time of a car is given below. Analyze the graph and explain the motion of car.

Answer:
The car starts from rest a time t=0s from the origin 0 and picks up speed till t=10s. After 10 sec, the car moves with uniform speed till t=18 sec. Then the brakes are applied and the car stops at t = 20s and x = 296m.

Question 2.
Draw the position-time for an object

1. moving with positive velocity
2. moving with negative velocity.

Answer:
1.

2.

Average Velocity And Average Speed
1. Average Velocity:
The average velocity of a particle is the ratio of the total displacement to the time interval.

Explanation:
To explain average velocity, consider a position time graph of a body given below.

Let x₁ be the position of body at a time t₁ and x₂ be the position at t₂.
The average velocity during the time interval Dt = (t₂ – t₁)

where Dx = x₂ – x₁, and Dt = t₂ – t₁,
\(\overline{\mathbf{v}}\) is the average velocity.

Question 3.
Find the slope of position time graph given below of uniform motion and explain the result.

Answer:

Slope of displacement time graph gives average velocity.

Question 4.
Displacement time graph of a car is given below.

1. Find the average velocity during the time interval 5 to 7 sec.
2. Find the average velocity by taking slope in the interval 5 to 7 sec.

Answer:
1.

2. Slope, tan q

In this case, slope and average velocity are equal in the same interval.

2. Average Speed:
Average speed of a particle is the ratio of the total distance to total time taken.

Question 5.
A car is moving along a straight line. Say OP in figure. It moves from 0 to P in 18s and returns from P to Q in 6s. What are the average velocity and average speed of the car in going?

1. From 0 to P? and
2. from 0 to P and back to Q. (See Figure 3.1)

Answer:
1. Average velocity

Average speed

In this case the average speed is equal to the magnitude of the average velocity.

2. In this case
Average velocity

Average speed

In this case the average speed is not equal to the magnitude of the average velocity. This happens because the motion here involves change in direction. So that the distance is greater than displacement.
Note: In general, the velocity is always less than or equal to speed.

Instantaneous Velocity And Speed
Nonuniform Motion:
A body is said to be nonuniform motion, if it undergoes unequal displacements in equal intervals of time.

OR

A body moving with varying velocity is called nonuniform motion.

1. Instantaneous Velocity:
Question 6.
Why the concept of instantaneous velocity is introduced?
Answer:
In nonuniform motion the average velocity tells us how fast the object has been moving over a given interval. But it does not tell us how it moves at different instants during that interval. For this we define instantaneous velocity. The velocity at an instant is called instantaneous velocity.
Explanation:
Position-time of a body moving along a straight line is given below.

Let us find average velocity in the interval 2 sec (3s to 5s), centered at t = 4 sec. In this case, the slope of line P₁P₂ give the value of average velocity, ie. Slope of P₁P₂,

Decrease the value of Dt from 2.to 1 sec. (ie. 3.5 to 4.5 sec). Then line P₁P₂ becomes Q₁Q₂. Then the slope of gives average velocity overthe interval 3.5 sec to 4.5sec.
ie. slope of Q₁Q₂

In the limit Dt ® 0, gives the instantaneous velocity at t = 4sec and its value is nearly 3.84m/s.

Question 7.
When average velocity of a body becomes instantaneous velocity?
Answer:
In the limit, Dt goes to zero, the average velocity becomes instantaneous velocity.

But lim \(\lim _{\Delta t \rightarrow 0} \frac{\Delta x}{\Delta t}=\frac{d x}{d t}\)
\Instantaneous velocity,

Here \(\frac{d x}{d t}\) is the differential coefficient of x with respect to time. It is the rate of change of position with respect to time at an instant.

Question 8.
The table given below gives the value of \(\frac{\Delta x}{\Delta t}\) for Dt equal to 2s, 1s, 0.55, 0.1s and 0.01s centered at t = 4 sec. (See figure given above). What conclusions can be made from this table?
Answer:
The value of average velocity \(\left(\frac{\Delta x}{\Delta t}\right)\) becomes instantaneous velocity (3.8 m/s), in the limit of Dt goes to zero, (ie Dt is infinitesimally small).

Question 9.
The position of an object moving along x-axis is given by x = a + bt² where a = 8.5m, b = 2.5 m/s² and t is measured in seconds

1. What is the velocity at t = 0s and t = 2s.
2. What is the average velocity between t = 2s and t = 4s?

Answer:
1.

when t = 0
we get v = 2 × 2.5 × 0
v = 0
when t = 2sec
v = 2 × 2.5 × 2 v = 10m/s.

2. The average velocity

Note: If a body is moving with constant velocity, the average velocity is the same as instantaneous velocity at all instants.

2. Instantaneous Speed:
The speed at an instant is called instantaneous speed.
Note:

• The average speed over a finite interval of time is greater or equal to the magnitude of the average velocity.
• Instantaneous speed at an instant is equal to the magnitude of the instantaneous velocity at that instant.

Acceleration
1. Average Acceleration:
Average acceleration of a particle is ratio of the change in velocity to the time interval.

Explanation
Consider a body moving along a straight line. Let v₁ and v₂ be the instantaneous velocities at time t₁ and t₂ respectively.


where Dv = change in velocity, Dt = Time interval

2. Instantaneous Acceleration:
Acceleration at any instant is called instantaneous acceleration.
Explanation
In the limit Dt ® 0, (Dt goes to zero) the average acceleration becomes instantaneous acceleration.
ie. Instantaneous acceleration

Instantaneous acceleration is the rate of change of velocity with respect to time.

3. Uniform Acceleration:
A body is said to be in uniform acceleration, if velocity changes equally in equal intervals of time.

Question 10.
The velocities of two bodies A and B are given in the tables. From this table, find which body is moving with uniform acceleration. Explain.
Body A

Body B

Answer:
The body A is moving with uniform acceleration be-cause the velocity of body increases at the rate of 2 m/s².
The body B is moving with constant velocity. Hence this motion is called uniform motion.

4. Velocity-Time Graph For Uniformly Accelerated Motion:

An example for velocity-time of a uniformly accelerated motion is given in the above figure.
Let v_t1 and v_t2 be the velocities at instants t₁ and t₂respectively.
The slope of graph in the interval (t₂ – t₁) can be written as,

∴ tan q = acceleration
Thus the slope of the velocity-time gives the acceleration of the particle.

Question 11.
Velocity-time of a body is given below. From this graph draw corresponding acceleration time graph.

Answer:
The slope of velocity-time graph increases in the interval (0 – 10) sec which means that acceleration of the body increases in this interval.

Velocity is constant in the interval (10 – 18) sec. Hence ’ the slope is zero which means that acceleration is zero in this range.

The slope in the interval (18 – 20) sec is constant and negative. Hence acceleration in this is a negative value. The acceleration – time graph for the above motion is given below.

Question 12.
The position-time graph of a car is given below.

1. Draw corresponding velocity-time graph. Explain the reason for your answer.
2. From velocity-time graph draw acceleration-time graph and identify the regions of

• positive acceleration
• Negative acceleration
• zero acceleration.

Answer:
1. In the time interval (0 – t₁) sec, the slope of x – t graph increases which means that velocity is increasing in this time interval.

In the time interval (t₁ – t₂) sec, slope is constant. Hence velocity remains constant in this time interval.

In the time interval (t₂ – t₃) sec, the slope is decreasing and finally becomes zero. Which means that velocity decreases to zero.

2. Slope is constant throughout the interval (0 – t₁) sec which means that acceleration constant.

In the interval (t₁ – t₂) sec, slope is zero. Which means that acceleration is zero in this region.

Slope is constant (but negative) in the interval (t₂ – t₃)sec. Hence acceleration is constant and negative in this time interval.

Question 13.
Find the region of

1. positive acceleration
2. zero acceleration
3. negative acceleration from the above x-t graph

Answer:

1. Region OA – Positive acceleration
2. Region AB – zero acceleration
3. Region BC – Negative acceleration

Question 14.
Match the following.

Answer:
1) – d, 2) – c, 3) – b, 4) – a.

5. Area Under Velocity-Time Graph:
Area under velocity-time graph represents the displacement over a given time interval.
Explanation
Consider a body moving with constant velocity v. Its velocity-time graph is given below.

The area of the rectangle has height v and bast t. Therefore,

Note: The acceleration and velocity of a body cannot change values abruptly at an instant. Changes are always continuous.

Kinematic Equations For Uniformly Accelerated Motion
For uniformly accelerated motion, we can derive some simple equations.

1. Velocity-time relation
2. Position-time relation
3. Position-velocity relation

These equations are called kinematic equations for uniformly accelerated motion.
1. Velocity-Time Relation:

Consider a body moving along a straight line with uniform acceleration ‘a’. Let ‘u’ be initial velocity and ‘v ‘ be the final velocity at time t.
We know acceleration a = \(\frac{\text { Change in velocity }}{\text { Time interval }}\)
a = \(\frac{v-u}{t}\)
at = v – u

2. Position-Time Relation:

Consider a body moving along a straight line with uniform acceleration a. Let ‘u’ be initial velocity and ‘v’ be the final velocity. ‘S’ is the displacement travelled by the body during the time interval ‘t‘.
Displacement of the body during the time interval t,
S = average velocity × time
\(S=\left(\frac{v+u}{2}\right) t\) _____(1)
But v = u + at ____(2)
Substitute eq.(2) in eq.(1), we get

3. Position-Velocity Relation:
\(S=\left(\frac{v+u}{2}\right) t\) _____(1)
But v = u + at
\(\frac{v-u}{a}\) = t _____(2)
Substitute eq.(2) in eq.(1)

2as = v² – u²
v² – u² = 2as

Free-fall:
An object released (near the surface of earth) is accelerated towards the earth. If air resistance is neglected, the object is said to be in free fall. The acceleration due to gravity near the surface of earth is 9.8 m/s².
Note: Free-fall is a case of motion with uniform acceleration.

Question 15.
A body is allowed to fall freely. Draw the following graph.

1. Acceleration-time
2. Velocity-time
3. Position-time

Answer:
1.

2.

3.

Stopping distance of vehicles:
When brakes are applied to a moving vehicle, the distance it travels before stopping is called stopping distance.

Question 16.
Derive an expression for stopping distance of a vehicle in terms of initial velocity (u) and retardation (a).
Answer:
Let the distance travelled by the vehicle before it stops be ‘s’.
Then we can find ‘s’ using the formula
v² = u² + 2as
0 = u² + -2as

3.7 Relative Velocity
Suppose the distance between two bodies changes with time in magnitude, or in direction or in both. Then each body is said to have a velocity relative to the other.

For example, consider two cars A and B moving in the same direction with equal velocities. To a person in A, the car B would appear to be rest.

Hence the velocity of B relative to A is zero.
ie. V_BA = 0
Similarly, the velocity of A with respect to B is zero.
or V_AB = 0
Let A be moving with a velocity V_A and B be moving with a greater velocity V_B in the same direction. Then the person in A feels that the car B is moving away from him with a velocity V_BA. The velocity of B relative to A

For an observer in B, the car A is going back with a velocity. The velocity of A relative to B
V_AB = -(V_B – V_B).

Question 17.
The position-time graph of two bodies A and B (at different situations) are given in the following graphs. Find the relative velocities of the following graph.

Answer:
a) The slope of Aand B are equal. Hence velocity of A and B are equal. So velocity of A with respect to B, V_AB = 0

b) The body A and B meet at t = 3sec

Velocity of A w.r. to B, V_AB = V_A – V_B
= 20-10 = 10 m/s Velocity of B w.r. to A, V_BA = V_B – V_A
= 10 – 20 = -10 m/s

c) The body A and B meet at t = 1 sec.
The velocity of body in the interval t = 1 sec,

Velocity of A w. r. to B,
V_AB = V_A – V_B
= 20 – 10 = 30 m/s
Similarly velocity of B w.r. to A,
V_BA = V_B – V_A
= 10 – +20 = -30 m/s
The magnitude of V_BA or V_AB (=30 m/s) is greater than the magnitude of velocity A or that of B.

Students can Download Chapter 3 Private, Public and Global Enterprises Notes, Plus One Business Studies Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Business Studies Notes Chapter 3 Private, Public and Global Enterprises

Contents

• Private sector and Public sector – Meaning
• Departmental Undertakings – Meaning – Features Advantages & Disadvantages
• Public Corporation – Meaning – Features Advantages & Disadvantages
• Government Company – Meaning – Features Advantages & Disadvantages
• Changing Role of Public Sector – Public Sector Reforms since 1991
• Global Enterprises – Meaning – Features Joint Ventures – Meaning – Benefits

The economy may be classified into two sectors viz., private sector and public sector:
1. Private Sector:
The private sector consists of business owned by individuals or a group of individuals. The various forms of organisation are sole proprietorship, partnership, joint Hindu family, cooperative and company.

2. Public Sector:
The business units owned, managed and controlled by the central, state or local government are termed as public sector enterprises or public enterprises. These are also known as public sector undertakings.

Characteristics of Public Sector Enterprises:

1. The public enterprises are owned and managed by the central or state government, or by the local authority.
2. The public enterprises get their capital from Government Funds
3. The main objective of public sector enterprises is providing the service or commodity at reasonable prices.
4. Public sector enterprises concentrate on providing public utility services like transport, electricity, telecommunication etc.
5. Public enterprises are are accountable to the public through the Parliament.

Forms of organizing Public sector Enterprises

1. Departmental Undertaking
2. Statutory Corporation (public corporation)
3. Government Company

Departmental Undertaking:
This is the oldest and most common form of organization. These are established as departments of the ministry and are financed, managed and controlled by either central govt, or state govt.. They are managed by government employees and work under the control of a minister. eg: Railways, Post & Telegraph, All India Radio, Doordarshan, Defense undertakings etc.

Features

1. The enterprise is financed by annual appropriation from the budget of the Government and all revenue is paid to the treasury.
2. The enterprise is subject to accounting and audit control.
3. It is subject to the direct control of the ministry.
4. Its employees are govt, employees and are recruited and appointed as per govt, rules.
5. They are accountable to the concerned ministry.

Merits:

1. These undertakings facilitate the Parliament to exercise effective control over their operations.
2. These ensure a high degree of public accountability.
3. The revenue earned by the enterprise goes directly to the treasury and hence is a source of income for the Government.
4. Where national security is concerned, this form is most suitable since it is under the direct control and supervision of the concerned Ministry.

Limitations:

1. Departmental undertakings lack flexibility because its policies cannot be changed instantly.
2. The employees are not allowed to take independent decisions, without the approval of the ministry concerned. This leads to delay in decision making.
3. These enterprises are unable to take advantage of business opportunities.
4. There is red tapism in day-to-day operations.
5. There is a lot of political interference through the ministry.
6. These organisations are usually insensitive to consumer needs and do not provide adequate services to them.

Statutory Corporations ( Public Corporation):
Statutory corporations are public enterprises brought into existence by a Special Act of the Parliament. The Act defines its powers and functions, rules and regulations governing its employees and its relationship with government departments. eg: LIC, IFCI, RBI, SBI, ONGC, UTI, Air India etc.
Features:

1. Statutory corporations are set up under an Act of Parliament and are governed by the provisions of the Act.
2. It is wholly owned by the state.
3. It has a separate legal entity, i.e it can sue and be sued, enter into contract and acquire property in its own name.
4. It is usually independently financed.
5. It is not subject to budget, accounting, and audit laws.
6. The employees of these enterprises are not government or civil servants.

Merits:

• They enjoy independence in their functioning and a high degree of operational flexibility
• It enjoys administrative and financial autonomy
• Since they are autonomous organizations, they can frame their own policies and procedures
• A statutory corporation is a valuable instrument for economic development

Limitations:

• A statutory corporation does not enjoy as much operational flexibility
• Government and political interference has always been there in major decisions
• Where there is dealing with public, rampant corruption exists
• Commercial principles are ignored in the operation of public corporations which leads to inefficiency.

Government Company:
A Government Company is established under the Indian Companies Act, 1956. According to the Indian . Companies Act 1956, a government company means any company in which not less than 51 percent of the paid up capital is held by the central Private, Public and Global Enterprises government, or by any state government or partly by central government and partly by one or more state governments.
Features:

1. It is registered under the Companies Act, 1956.
2. It has a separate legal entity. It can sue and be sued and can acquire property in its own name.
3. The management of the company is regulated by the provisions of the Companies Act.
4. Employees are recruited and appointed as per the rules and regulations contained in Memorandum and Articles of association.
5. These companies are exempted from the accounting and audit rules and procedures.
6. The government company obtains its funds from government shareholdings and other private shareholders.

Merits:

1. It has a separate legal entity, apart from the Govt.
2. It enjoys flexibility and autonomy in all management decisions
3. These companies by providing goods and services at reasonable prices are able to control the market.
4. The formation of a Government company is easy as compared to other forms of Government enterprises.
5. It can appoint professional managers on high salaries.

Limitations:

1. It evades constitutional responsibility as it is not directly answerable to parliament.
2. They are autonomous only in name. Company is operated by the controlling ministry.
3. The law relating to the companies, in general is meaningless for the government companies, as it requires fulfillment of various formalities.

Comparative Features of the various forms of Public Enterprises:

Role and importance of Public Sector:
1. Development of infrastructure:
It is the responsibility of the Government to provide infrastructural facilities to the core sector which requires huge capital investment, complex and upgraded technology etc.

2. Regional balance:
The government is responsible for developing all regions and states in a balanced way and removing regional disparities.

3. Economies of scale:
Public sector enterprises are large in size and are, able to avail the advantages of large scale operations.

4. Check over concentration of economic power:
The development of public enterprises prevents concentration of economic power and wealth in the hands of private sector.

5. Employment opportunities:
Public sector enterprises helps to generate a large number of employment opportunities.

6. Import substitution:
It is also necessary for the economic progress of the country that industries which can decrease imports and increase exports are only promoted. Public enterprises also ensure promotion of such industries.

Public Sector Reforms:
In the industrial policy 1991, the govt, of India introduced four major reforms in public sector.
They are:
1. Reduction in number of industries reserved for public sector:
The number of industries reseved for public sector is reduced from 17 to 8 in 1991. But in 2001 it is again reduced to 3 industries. These three industries are atomic energy, arms and rail transport.

2. Memorandum of Understanding (MOU):
Under this govt, lays down performance targets for the management and gives greater autonomy to hold the management accountable for the results.

3. Disinvestment:
Disinvestment involves the sale of equity shares to the private sector and public. The objective was to raise resources and encourage wider participation of the general public in the ownership of these enterprises.

4. Restructure and Revival:
All public sector sick units were referred to Board of Industrial and financial Reconstruction (BIFR). Units which were potentially viable were restructured and which could not be revived were closed down by the board.

Objectives of privatizing public sector enterprises:

1. Releasing the large amount of public resources locked up in nonstrategic Public Sector Enterprises (PSEs), so that they may be utilized on other social priority areas such as basic health, family welfare and primary education.
2. Reducing the huge amount of public debt and interest burden;
3. Transferring the commercial risk to the private sector so that the funds are invested in able projects;
4. Freeing these enterprises from government control and introduction of corporate governance; and
5. In many areas where the public sector had a monopoly, for example, telecom sector the consumers have benefitted by more choices, lower prices and better quality of products and services.

Global enterprises (Multi National Companies):
Global enterprises are huge industrial organisations which extend their industrial and marketing operations through a network of their branches in several countries. Their branches are also called Majority Owned Foreign Affiliates (MOFA).

They are characterised by their huge size, large number of products, advanced technology, marketing strategies and network of operations all over the world. Eg. Pepsi, Coca Cola, Cadbury, Sony, Susuki etc.
Features of MNCs:
1. Huge capital resources:
Multinational companies have the ability to raise huge funds from different sources such as equity shares, debentures, bonds etc. They can also borrow from financial institutions and international banks.

2. Foreign collaboration:
Global enterprises usually enter into agreements relating to the sale of technology, production of goods, use of brand name etc. with local firms in the host countries.

3. Advanced technology:
Multinational companies can possess latest and advanced technology so that they can provide quality products.

4. Product innovation:
Multinational companies are able to conduct sophisticated research so that they can develop new products.

5. Marketing strategies:
They use aggressive marketing strategies in order to increase their sales in a short period. Their advertising and sales promotion techniques are normally very effective.

6. International Market:
They operate through a network of subsidiaries, branches and affiliates in host countries. Due to their giant size, they occupy a dominant position in the market.

7. Centralised control:
They have their headquarters in their home country and exercise control over all branches and subsidiaries.

Joint Ventures:
When two or more independent firms together establish a new enterprise by pooling their capital, technology and expertise, it is known as a joint venture. The risks and rewards of the business are also shared.

The aim of joint venture is business expansion, development of new products or moving into new markets, particularly in another country. Benefits
1. Increased resources and capacity:
Since two or more firms join together to form a joint venture, there is availability of increased capital and other resources, able to face market challenges and take advantage of new opportunities.

2. Access to new markets and distribution networks:
A foreign company gain access to the vast Indian market by entering into a joint venture with Indian Company. They can also take advantage of the established distribution channels.

3. Access to technology:
It provides access to advanced techniques of production which increases efficiency and then helps in reduction in cost and improvement in quality of product.

4. Innovation:
Foreign partners can come up with innovative products because of new ideas and technology.

5. Low cost of production:
Low cost of raw materials, technically qualified workforce, management professionals, excellent manpower etc. helps to reduce cost of production and it results increased productivity.

6. Established brand name:
When one party has well established brands and goodwill, the other party gets its benefits.

Students can Download Chapter 7 Systems of Particles and Rotational Motion Notes, Plus One Physics Notes helps you to revise the complete Kerala State Syllabus and score more marks in your examinations.

Kerala Plus One Physics Notes Chapter 7 Systems of Particles and Rotational Motion

Summary
Introduction
In the earlier chapters we discussed the motion of particle. We applied the results of our study to the motion of bodies of finite size.

A large class of problems with extended bodies can be solved by considering them to be rigid bodies. Ideally a rigid body is a body with a perfectly definite and unchanging shape. The distances between different pairs of particles of such a body do not change.

(i) Basically a rigid body can have two types of motion.

1. translational
2. Rotational motion

1. Translational motion:

In pure translational motion, at any instant of time every particle of the body has the same velocity. Explanation
Consider a rectangular block moving down along an inclined plane as shown in the figure: This body is rigid. Hence all the particles have same velocity. Any points like P1 or P2 of the body moves with the same velocity at any instant of time.

2. Rotational motion:
In pure rotational motion at any instant of time every particle of the body have different velocities. Explanation

Consider a cylinder rolling down along inclined plane as shown in figure. Points P1, P2, P3 and P4 have different velocities (shown by arrows) at any instant of time.
Note: The above figure shows a combination motion of both translational and rotational motion.

Centre Of Mass
The centre of mass of a system of particles is the point where all the mass of the system may be assumed to be concentrated.
Position vector of two particle system:

Consider two particles of masses m1 and m2 with position vectors \(\vec{r}_{1}\) and \(\vec{r}_{2}\) respectively with respect to the origin O. Now the position coordinate of the center of mass C is defined as.

X, Y and Z coordinate of centre of mass of two particle system

Position vector of N particle system:
Consider a system of N particles of mass m₁, m₂…….,mN with position vectors \(\vec{r}_{1}, \vec{r}_{2}, \ldots \ldots \ldots \vec{r}_{N}\) respectively. Then the centre of mass of the system of N particle is defined as

Position vector of CM of continuous distribution of mass:
If body is continuous distribution of mass, we divide the body into n small elements of mass: Dm₁, Dm₂,………..DmN. Let r₁, r₂,……….rN be the position vectors of those small elements respectively.
Then position vector of CM is,

when we take N as bigger ((Dmi) becomes smaller) the summation can be changed into integration.

Motion Of Centre Of Mass
Velocity of centre of mass. The position vector of the centre of mass of N particle system is given

Differentiating the position vector of C.M., we get velocity of CM. ie;

Acceleration of centre of mass:
Acceleration of centre of mass a = \(\frac{\mathrm{d}}{\mathrm{dt}} \overrightarrow{\mathrm{v}}\)

Force acting on the centre of mass:
Force acting on the centre of mass = Total mass at the centre of mass × acceleration of the centre of mass.
ie; \(\overrightarrow{\mathrm{F}}\) = M\(\overrightarrow{\mathrm{a}}\) ______(1)
But F = F_internal + F_extenal
By Newton’s third law, sum of the internal forces is zero.
∴ F = F_extenal
Therefore eq(1) becomes

Therefore the centre of mass moves as if it were a particle of mass equal to the total mass of the system and all the external forces are acting on it.

Linear Momentum Of A System Of Particles
Momentum of centre of mass
Velocity of centre of mass,

The equation means that, the total momentum of a system of particles is equal to the product of the total mass of the system and the velocity of its centre of mass.
Momentum conservation and centre of mass motion:
statement:
The total momentum of the centre of mass is conserved if no external force acts.
Proof:
According to Newton’s second law, rate of change momentum of centre of mass is directly proportional s to force acting on it.

If the total external force acting on the system is zero; the centre of mass moves with a constant velocity.
Application of the idea of centre of mass:

1. Explosion of a shell inflight

Consider a shell projected into air. If it is not exploded, its path will be a parabola. If it is exploded in air, the centre of mass follows the same parabolic path. Because the forces due to explosion are internal. Internal force can’t change the direction of centre of mass.
Note: External force can change the direction of centre of mass

2. Decay of radio active nuclei at rest:

Consider radioactive decay of radium nucleus moving along a straight line. A radium nucleus disintegrates into a nucleus of radon and an alpha particle. The two particles produced in the decay move in different directions. But the centre of mass (of radon and α particle) moves along a straight line, because the force leading to decay is internal. Internal force can’t change the direction of centre of mass.

Centre of mass frame:
If we observe this decay from the frame of reference in which the centre of mass (of a particle and radon) at rest, the product particle seems to be moving in opposite direction along a straight line.

In centre of mass frame, the motion of product particles become simple.

3. Binary stars:

Consider the trajectories of the two stars of equal mass as shown in figure. If there are no external forces, the centre of mass moves along a straight line as shown in figure.

Centre of mass frame of Binary stars:
If we look the trajectories of S₁ and S₂ from the centre of mass frame, we find that these two stars are moving in a circle as shown in figure.

In this frame of reference, the trajectories of the stars are a combination of

1. uniform motion in a straight line of the centre of mass and
2. circular orbits of the stars about the centre of mass.

Vector Product Of Two Vectors
The vector product of two vectors \(\overrightarrow{\mathrm{a}}\) and \(\overrightarrow{\mathrm{b}}\) is


Screw rule:
Rotate a right handed screw from \(\overrightarrow{\mathrm{a}}\) to \(\overrightarrow{\mathrm{b}}\). Then the direction of advance of the. tip of the screw gives the direction of (\(\overrightarrow{\mathrm{a}}\) × \(\overrightarrow{\mathrm{b}}\))

Right hand rule:
Curl the fingers of the right hand from \(\overrightarrow{\mathrm{a}}\) to \(\overrightarrow{\mathrm{b}}\) along the shorter angle. Then the direction in which the thumb points gives the direction of (\(\overrightarrow{\mathrm{a}}\) × \(\overrightarrow{\mathrm{b}}\)).

Properties of cross product:

Note:
If \(\hat{i}, \hat{j}, \hat{\mathbf{k}}\) occur cyclically in the above vector product relation, the vector product is positive. If \(\hat{i}, \hat{j}, \hat{\mathbf{k}}\) do not occur in cyclic order, the vector product is negative.

Question 1.

Answer:

Angular Velocity And Its Relation With Linear Velocity
In earlier chapter, we treated angular velocity as scalar. But angular velocity is a vector quantity. The relation between angular velocity and linear velocity can be written in vector notation as

Direction of angular velocity:

Consider a body moving along the circumference of circle of radius ‘r’with velocity v. Then the direction of angular velocity will be perpendicular to both \(\overrightarrow{\mathbf{V}}\) and \(\overrightarrow{\mathbf{r}}\) (along the axis of rotation).

The figure(1) shows the direction of w, if body rotates in clockwise direction.

The figure(2) shows the direction of w, if body rotates in anticlockwise direction.
1. Angular acceleration:
Rate of change of angular velocity is called angular acceleration.
angular acceleration \(\vec{\alpha}=\frac{\mathrm{d} \vec{\omega}}{\mathrm{dt}}\)
If the axis of rotation is fixed, the direction of ω and hence α is fixed. In this case the vector equation reduces to scalar equation.

Torque And Angular Momentum
Torque and angular momentum are important quantities to discuss the motion of rigid bodies.

1. Moment of force (Torque)
Torque (or the moment) of a force of about a point is the rotating effect of the force about that point.
Explanation

If f is the force acting at a point A, then torque about a point O is given by


Where \(\overrightarrow{\mathbf{r}}\) is the position vector of the point A from the point O. Torque is a vector quantity. The direction of torque is (given by right hand screw rule). Perpendicular to both \(\overrightarrow{\mathbf{r}}\) and \(\overrightarrow{\mathbf{f}}\).
Unit:
The unit of torque is Nm.
Note:

• If the turning tendency of the force is anticlockwise, then the torque is positive and if it is clockwise, then torque is negative.
• Torque has dimensions ML²T^-2. Its dimensions are the same as those of work or energy. Torque is. vector, while work is scalar.
• Torque plays the same role in rotational motion as force does in translational motion.

Couple:
Two equal and opposite forces, separated by a distance, constitute a couple.

Moment of couple (Torque):
The moment of couple is the product of either of the forces and the perpendicular distance between them.

Question 2.
The door is a rigid body which can rotate about a fixed axis passing through the hinges. What makes the door rotate?
Answer:
A force applied to the hinge line can’t produce any rotation. But a force of given magnitude applied at right angles to the door at its outer edge is most effective in producing motion. The rotational analogue of force is moment of force. It is also referred to as torque.

Question 3.
When you fix a handle on a door where do you fix it?
Answer:
You fix it in such a way that the torque is maximum. For this the lever arm must be maximum. So the handle is fixed as far away from the hinges as possible Note: A couple produces rotation without translation motion.

2. Angular momentum of a particle:
Angular momentum of a particle about a point is defined as the moment of its linear momentum about that point.
Explanation

Considers particle of mass ‘m’ and linear momentum \(\overrightarrow{\mathbf{p}}\) at a position \(\overrightarrow{\mathbf{r}}\) relative to the origin O. The angular momentum \(\overrightarrow{\mathbf{l}}\) of the particle can be written as (with respect to the origin O).

Note:

• The quantity angular momentum is the rotational analogue of linear momentum.
• Direction of \(\overrightarrow{\mathbf{l}}\) is given by right hand screw rule, (angular momentum is perpendicular to both \(\overrightarrow{\mathbf{r}}\) and \(\overrightarrow{\mathbf{p}}\)).

Relation between angular momentum and torque:
Angular momentum of a particle,

When differentiate on both side, we get


ie The rate of change of angular momentum is the torque applied to it. This is similar to force equal to rate of change of linear momentum.

Torque and angular momentum for a system of particles:
Consider a system having n particles. The total angular momentum of system is the vector sum of angular momentum of individual particles.
∴ total angular momentum of system,

\(\frac{\mathrm{dL}}{\mathrm{dt}}=\tau\) _____(1)
But Στ_i = τ is the total torque acting on the system of particle. Actually torque acting on a system is sum of external torque (τ_ext) and internal torque (τ_int)
ie. τ = τ_ext + τ_int
But τ_int = 0, because internal torque arises due to action – reaction pair. Action reaction pair for a system is zero.
∴ τ = τ_ext ______(2)
substituting eq(2) is eq (1) we get
\(\frac{\mathrm{d} \overrightarrow{\mathrm{L}}}{\mathrm{dt}}=\tau_{\mathrm{ext}}\)
The above equation means that, the time rate of the total angular momentum of a system of particles about a point is equal to the sum of the external torques acting on the system taken about the same point.

Conservation of angular momentum of a system:
For a system of particles,


If the total external torque on a system of particles is zero, then the total angular momentum of the system is conserved.
Note: The statement that the total angular momentum is conserved means that each of these three components (Lx, Ly, Lz) is conserved.

Equilibrium Of A Rigid Body
A rigid body is said to be in a mechanical equilibrium, if both it’s linear momentum and angular momentum are not changing with time.

(or)

A body is said to be in mechanical equilibrium, if the body has neither linear acceleration nor angular acceleration. A body moving with constant momentum is said to . be in translational equilibrium. Similarly a body with constant angular momentum is said to be in rotational equilibrium.

Condition for translational equilibrium:
If the total force acting on a rigid body is zero, the body, moves with constant linear momentum (or zero linear acceleration). The body moving with constant linear momentum is said to be in translational equilibrium Undertranslational equilibrium, the total force acting on the rigid body is zero.

Condition for rotational equilibrium:
If the total torque acting on rigid body is zero, the total angular momentum of the body does not change. Then the body is said to be in rotational equilibrium. Mathematical condition for rotational equilibrium is

Principles of moments:

Consider a lever pivoted at some origin (say fulcrum) in mechanical equilibrium. Let \(\overrightarrow{\mathrm{f}}_{1}\) and \(\overrightarrow{\mathrm{f}}_{2}\) he the forces acting at A and B as shown in figure. Let \(\overrightarrow{\mathrm{R}}\) be the reaction of the support at the fulcrum. For translational equilibrium

For rotational equilibrium, sum of moments must be zero.
ie d₁f₁ + -d₂f₂ = 0
d₁f₁ = d₂f2₂ ______(2)
In the case of lever, f₁ is used to lift some weight. Hence f₁ is called load and its distance from the fulcrum d₁ is called load arm. Force f₂ is the effort applied to lift the load, distance d₂ is called effort arm.
Hence d₁f₁ = d₂f₂ can be written as
load arnn × load = effort arm × effort
The above equation expresses the principle of moments for a lever.
The ratio \(\frac{f_{1}}{f_{2}}\) is called mechanical advantage (MA)
Note:
High value of mechanical advantage means that a small effort can be used to lift a large load.
Examples for level

• See – saw
• Beam balance

1. Centre of gravity:
Centre of gravity of a body is that point through which the net gravitational force acts. The centre of gravity of a body may not be the same as its centre of mass. For a body of very large dimensions, the value of acceleration due to gravity is different for its different parts. In this situation the centre of gravity does not coincide with the centre of mass.

If the size of the body is small, the value of acceleration due to gravity is same for its different parts. In this situation, the centre of gravity of the body coincides with the centre of mass. Torque due to gravity.

Moment Of Inertia
A body at rest cannot rotate by itself. A body in uniform rotation cannot stop by itself. This inability of a material body is called rotational inertia. It depends on the mass of the body and axis of rotation. In other words it depends on a quantity called moment of inertia.

a. Moment of inertia of a particle:
Consider a particle of mass ‘m’ capable of rotation about an axis AB.

Let ‘r’ be the perpendicular distance of particle from AB. The moment of inertia of the particle about AB is defined as the product of mass of the particle and square of the distance between the particle and the axis of rotation.

b. Moment of inertia of a rigid body:

Consider a rigid body capable of rotation about an axis AB. Let the body consisting of particles of , masses, m₁, m₂, m₃……….m_n at distances r₁, r₂, r₃………..r_n
Then by definition, moment of inertia of m, about AB = m₁r₁².
M.I of m₂ about AB = m₂r₂²
————————–
M.I. of m_n about AB = m_nr_n²
Therefore total moment of inertia of the body about
I = m₁r₁² + m₂r₂² + ………………m_nr_n²

c. Moment of inertia of a ring about an axis through its centre and perpendicular to its plane:
Consider ring of mass M and radius R. AB the axis of rotation. Let ‘m’ be the mass of small section on the circumference of the ring.

M.I. of ‘m’about AB = mR²
∴ Total moment of inertia about AB,
I = ΣmR²

where Σm = M.

d. Moment of inertia of pair of small masses attached to the two ends of massless rod:
Consider a rigid massless rod of length / with a pair of small masses, rotating about an axis through the centre of mass perpendicular to the rod. Each mass M/2 is at a distance 1/2 from the axis of rotation.

∴ Total moment of inertia

Radius of gyration:
Radius of gyration of a body is the square root of ratio of moment of inertia and total mass of the body

Question 10.
Why do the concept of radius of gyration introduce?
Answer:
The moment of inertia of a body is given by
I = Σmr²
From the above equation it is clear that, we have to find the product of mass and the square of distances from the axis of rotation for all particles and then sum all these products. But the concept of radius of gyration simplifies the above problem.

In this method we find the centre of mass. Then we find a distance to any axis from this centre of mass, in such a way that the moment of inertia of this point (centre of mass) may be equal to that of I = Σmr². This distance from the axis of rotation to centre of mass is called radius of gyration. Practical utility of moment of inertia.

Question 11.
In a fly wheel (or) wheels of vehicles, most of the mass is concentrated at the rim? Explain why?
Answer:
(i) Flywheel:
The machines (such as steam engine, automobile engine etc) that produce rotational motion have a disc with large moment of inertia.

This disc is called fly wheel. Because of its large moment of inertia, the flywheel resists the sudden increase or decrease of the speed of the vehicle. It allows a gradual change in the speed and prevents the jerky motions. Thus fly wheel gives a smooth ride forthe passengers on the vehicle.

(ii) The wheels of vehicles:
The moment of inertia of wheels is increased by concentrating most of the mass at the rim of the wheel. If such a wheel gain or loses some K.E of rotation \(\left(\frac{1}{2} I \omega^{2}\right)\) brings a relatively smaller change in its angular speed w(∵ I is large) Hence such a flywheel helps in maintaining uniform rotation.

1. K.E of rotating body:
Consider a body rotating about an axis passing through some point O with uniform angular velocity ω. The body can be considered to be made up of a number of particles of masses m₁, m₂, m₃ etc.

At distances r₁, r₂, r₃ etc. All the particles will have same angular velocity ω. But their linear velocities will be different say v₁, v₂, v₃ etc.

Theorems Of Perpendicular And Parallelaxes
Theorem of perpendicular axes:
The moment of inertia of a planar body (lamina) about an axis perpendicular to its plane is equal to the sum of its moments of inertia about two perpendicular axes concurrent with perpendicular axis lying in the plane of the body.

(or)

Moment of inertia of a plane lamina about the z-axis is equal to sum of the moments of inertia about x axis and the y axis, if planer lamina lies in xy plane.
Explanation

Let I_x and I_y be the moments of inertia of the lamina about ox and oy. Let I_z be the moment of inertia of the lamina about an axis perpendicular to the lamina and passing through ‘0’ (about z axis) Then by perpendicular axis theorem.

Question 12.
M.l of disc about one of its diameters.
Answer:
According perpendicular axis theorem, I_z = I_x + I_y
But in case I_x = I_y
I_z = 2 I_x _____(1)
But we know I_z = MR²/2 _____(2)
sub(2) in (1), we get \(\frac{\mathrm{MR}^{2}}{2}\) = 2 I_x
I_x = \(\frac{M R^{2}}{4}\)
The moment of inertia about any diameter is \(\frac{M R^{2}}{4}\).

1. Theorem of parallel axis:
The moment of inertia of a body about any axis is equal to the sum of the moment of inertia of the body about a parallel axis passing through its centre of mass and the product of its mass and the square of the distance between the two parallel axes.

Explanation
Let I be the moment of inertia of a-body about an axisAB. Let I0 be moment of inertia about the axis CD parallel to AB and passing through the centre of gravity (G of the body). Let M be the mass of the body and ‘a’ be the distance between the two axes. Then by parallel axes theorem.
I = I_o + Ma²

Question 13.
What is the moment of inertia of rod of mass M, length l about an axis perpendicular to it through one end.

Answer:
Consider a rod of mass M and length l, rotating about an axis passing through one end. Let d_x be a small element at a distance x from the axis of rotation.
mass of the element dx, dm = \(\frac{M}{l}\)dx
∴ M.I of length small element, dl = \(\frac{M}{l}\) dx x²

Moment of inertia of a ring about a tangent:
Consider a ring of mass M and radius R. If this ring is rotating about tangent, we can use parallel axis theorem.
According to parallel axis theorem,

Kinematics Of Rotational Motion About A Fixed Axis
The quantities ‘q’, w and ‘α’ in rotational motion has corresponding quantities in translational motion (x, ‘v’ and a respectively). For translational motion, we have
v = u + at
v² = u² + 2as
s = ut+ \(\frac{1}{2}\) at²
putting u = w₁, v = w₂ and s = q, we get the equations of motion in rotational motion.
w₂ = w₁ + αt
ω₂² = ω₁² + 2αθ
θ = ω₁t + \(\frac{1}{2}\) αt²

Dynamics Of Rotational Motion About A Fixed Axis
Table 7.2 lists quantities associated with linear motion and their analogues in rotational motion.
a. Work done by a torque:

Consider a particle at P₁. Let r₁ be the position vector at time t = 0. This position vector makes an angle q with x – axis. Let particle be acted by a force \(\overrightarrow{\mathrm{F}}_{1}\). Due to this force the particle subtends an angle dq and reaches at p₁¹.

ds is the linear displacement due to the force \(\overrightarrow{\mathrm{F}}_{1}\) This force makes angle with α₁, the position vector r₁.f₁ is the angle made by \(\overrightarrow{\mathrm{F}}_{1}\) with linear displacement.
Form the triangle the workdone for small displacement ds,

Substituting the eq(2) in (1) we get
dW₁ = τ₁dθ
For rigid body, there are many particles. Hence total work done on it.
dW₁ = (τ₁ + τ₂ +……….)dθ

Where τ is the total torque acting oh the body.

b. Rateofwork done by torque:
Instantaneous power due to torque.
We know dw = τ dθ
dividing both sides by dt, we have \(\frac{d w}{d t}=\tau \frac{d \theta}{d t}\)
P = τω

c. Angular acceleration:
Rate of change of angular velocity is called angular acceleration.
Angular acceleration α = \(\frac{\mathrm{d} \omega}{\mathrm{dt}}\).

d. Relation between torque and angular acceleration:
The rate at which work is done on the body is equal to the rate at which kinetic energy increases.

τω = Iωα
τ = Iα
Note:
Just as force (F = ma) produces acceleration, torque produces angular acceleration in a body.
Newtons second law in rotation about a fixed axis

The angular acceleration is directly proportional to the applied torque and is inversely proportional to the moment of inertia of the body for rotation about a fixed axis.

Angular Momentum In Case Of Rotation About A Fixed Axis

Consider a rigid body rotating about a given axis with a uniform angular velocity w. Let the body consist of n particles of masses m₁, m₂, m₃…………m_n at perpendicular distances r₁, r₂, r₃………..r_n respectively from the axis of rotation.
If v₁, v₂, v₃…………v_n are the linear velocities of the
respective particles, then
v₁ = r₁w, v₂ = r₂w, v₃ = r₃w……….
The linear momentum of particle of mass m₁ is,
P₁ = m₁v₁
P₁ = m₁r₁w.
The angular momentum of this particle about the given axis,
l₁ = p₁ x r₁
= (m₁ v₁) x r₁
v₁ = r₁w
= m₁r₁²w
Similarly angular momentum of second particle
l₂ = m₂r₂²w
Angular momentum of the about the given axis,

1. Conservation of angular momentum:
Conservation of angular momentum and moment of inertia. When there is no external torque, the total angular momentum of a body or a system of bodies are a constant.

L = constant
But L = Iω
∴ Iω = a constant
Application

Question 14.
If the polar ice cap melts what will happen to the length of the day?
Answer:
For earth, angular momentum is a constant (Lw = constant, ie no torque acts on the earth). When the polar ice cap melts, the water thus formed will flow down to the equtorial region. The accumulation of water in equatorial line will increase the moment of inertia I of earth. In order to keep the angular momentum as a constant, w will decrease. The decrease in ‘w’ will increase the length of day.

Question 15.
If the earth loses the atmosphere what will happen to the length of the day?
Answer:
For earth, the angular momentum (L = Iw) is a constant, because there is no torque acting on it. When earth loses the atmosphere, I decreases and w increases to keep L as constant. Hence length of the day decreases.

Question 16.
A girl standing on a turn table. What happens to the rotation speed, if she stretches her hand?
Answer:
If a girl rotating with a uniform speed on turn table, it’s angular momentum (L = Iw) will be a constant. When she suddenly stretches her hand, I increases and w decreases to keep L as constant.

Question 17.
How does a circus acrobat and a divertake advantage of conservation of angular momentum?
Answer:
The diver while leaving the spring board, is throwing himself in a rotating, motion. When he brings his hands and legs close, I decrease and w increases. But before reaching water he will stretch his hands and legs. Hence I increases and w decreases. So that he gets a smooth entry into the water.

Rolling Motion

Question 18.
A wheel rolling uniformly along a level road is shown in the figure. The centre is moving with speed (V_CM). Find resultant velocities at P₁, P₂ and P₀.
Answer:
We know that the translational velocity of body is equal to the velocity of centre of mass. The velocity of centre of mass V_CM = Rw. Where R is the radius of wheel.
Velocity at P₁:
The point at P₁ has two velocities.

• Linear velocity (Vl)
• Translational velocity (Vt)

The linear velocity at P₁, V_l = Rw.
Translational velocity at P₁, V_t = Rw
[∵ translational velocities are same for all points on the wheel and its value equal to velocity of centre of mass].
The direction of V_l and V_t are same at P₁.
Hence total velocity at

Velocity at P₂:
Linear velocity at P₂, V_l = rw
[where r is the distance of P₂ from centre of mass]
translational velocity at P₂, V_t = Rw.
∴ Total velocity at

Velocity at P₀:
Linear velocity at P₀, \(\overrightarrow{\mathrm{V}}_{l}\) = Rω Translational at P₀, V_t = Rw.
The direction of V_land V_t are opposite.
∴ Hence total velocity,

= -Rw + Rw = 0
which means that the point P₀ is instantaneously at rest. Hence the friction at P₀ is zero. As a result rolling friction becomes less than the kinetic friction.
Note: The condition that P₀ is instantaneously at rest requires V_CM = Rw. Thus for the disc the condition for rolling without slipping is,
V_CM = RW.

1. Kinetic energy of rolling motion (without slipping):
In this case kinetic energy has two parts,

• due to the linear motion of centre of mass
• due to the rotational motion of the body.

K.E in terms of radius of gyration:
Moment of inertia I = mk²
where K is the radius of gyration of the body and v = Rw.
Substituting I, and V in eq(1), we get

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Kerala Plus One Business Studies Notes Chapter 5 Emerging Modes of Business

Contents

• E-business – Meaning and scope of e-business – Differences between traditional and e-business – Benefits and Limitations of e-business
• Online transactions – Steps -e-business risk – Resources required for e-buisness
• Outsourcing – Meaning – features – Benefits and Concerns of outsourcing – Types of outsourcing services

e-Business (Electronic Business):
e-business may be defined as the conduct of industry, trade and commerce using the computer networks. Computer network means internet, e-business versus e-commerce e-business is a wider term which includes e-commerce and other electronically conducted business functions such as production, accounting, finance, personnel etc.

e-commerce covers a firms interactions with its customers and suppliers over the internet, e-business is, therefore, clearly much more than buying and selling over the internet, i.e., e-commerce.

Various constituents of e-business:
1. B2B Commerce:
It is that business activity in which two business units make electronic transaction.
Eg. making enquiries seeking or placing orders, communicating supply of goods, making payments, and so on.

2. B2C Commerce:
When the transaction is between business and consumers, it is called Business to Consumers. It enables a business firm to be in touch with its customers on round the clock basis. It involves consumers placing order on line, electronic payment etc.

3. Intra-B Commerce:
It means interaction and dealings among various departments and persons within the firm. For example, the marketing department may interact regularly with the production department and other departments that help in attaining efficient inventory handling, better cash management, timely and sufficient provision of customer services, and so on.

4. C2C Commerce:
Under it, both the parties involved in electronic transaction are customers. It is required for buying and selling of those goods for which there are no established markets. For example, selling used books and household equipments.

Benefits of e-Business:

1. e-business is relatively easy to start and requires lower capital.
2. Customers can buy goods at any time from any seller located in different parts of the world.
3. Business transactions can .be made easily and speedily.
4. It helps the business units to operate at the national as well as the global level.
5. It helps to reduce clerical and paper work.
6. It helps to eliminate middlemen.
7. Any company can launch its new product in the market through the medium of E-Business.
8. It improves the brand image of the company.

Limitations of e-Business:

1. It lacks personal touch with customers, which makes it unsuitable for medical, legal services etc.
2. The transaction can be finalised quickly, but physical delivery of goods often takes long time and be delayed.
3. For successful implementation of e business, the parties to the transactions have to be familiar with computers.
4. It leads to leakage of confidential information such as credit card details. Also there are problems of virus and hacking.
5. It is difficult to establish identity of the parties .

Differences between Traditional business and e-business:

Traditional business	e- business
Its formation is difficult	Its formation is easy
Investment is very high	Investment is low
Physical presence is required	Physical presence is not required
Location is important	Location is not important
Operating cost is high	Operating cost is low
Contact with suppliers and customers is through intermediaries	Direct contact with the suppliers and customers
Business process cycle is long	Business process cycle is shorter
Inter personal touch is high	Personal touch is less
Limited market coverage	Access to the global market
Communication is in hierarchical order	Communication is in non hierarchical order
Transaction risk is less	Transaction risk is high

On line Transactions:
On line transaction means receiving information about goods, placing an order, receiving delivery and making payment through medium of internet.

Buying / Selling Process:

Steps involved in online purchase:
1. Register with the online vendor by filling-up a registration form.

2. Place the order for the items put by customer in his virtual shopping cart, an on-line record of what has been picked up while browsing the Online store.

3. Payment for the purchases through online shopping may be done in a number of ways: i.e Cash on delivery, cheque, net banking transfer, debit/credit card.

Net Banking Transfer:
Modem banks provide to their customers the facility of electronic transfer of funds over the net. In this case, the buyer may transferthe transaction amount to the account of the online vendor who may, then, proceed to arrange for the delivery of goods.

Debit card:
The holder of a debit card can buy goods from approved shops without paying cash against the balance in his bank account. Every purchase reduces bank balance. Debit card is issued to bank account holders only and against the amount deposited with the bank.

Credit cards:
A credit card is an instrument issued by a bank in the name of the customer providing credit up to a specified amount. The person holding a valid credit card uses it for purchasing goods from approved shops without paying cash. The payment is made by the bank to the sellers. The buyers have to pay for the purchase within the credit period.

Security and safety of e- Business:
There are three types Of possible risks as listed below:
(a) Transaction risks:

1. Seller may deny that customer ever placed the order or the customer may deny that he ever placed the order. It is called “Default on Order taking/Giving”.
2. Goods may be delivered at wrong address or wrong goods may be delivered which is referred as “Default on Delivery”.
3. Seller may complaint that he didn’t receive payment while customer may claim that payment was over. This is referred as “Default
   Payment”.

(b) Data storage and transmission risks:

1. VIRUS (Vital Information & Resources Under Siege): Virus can disrupt functioning, damage the data and even may cause complete destruction of the system.
2. Interception: Data maybe intercepted in the course of transmission

(c) Risks of threat to intellectual property and privacy:

1. Once the information is made available over the internet, it moves out of the private domain. So important information may be copied by others.
2. When data furnished goes in the hands of others they may start dumping with lot of advertising & promotional literature into our e-mail box.

Resources Required for Successful e-Business Implementation:
The resources required for the e-Business are:

1. Computer system
2. Internet connection and technically qualified work force
3. A well developed web page
4. Effective telecommunication system
5. A good system for making payment using credit instruments.

Outsourcing or Business Process Outsourcing (BPO):
Outsourcing is a management strategy by which an organisation contracts out its major non-core functions to specialized service providers with a view to benefit from their expertise, efficiency and cost effectiveness, and allow managers to concentrate on their core activities.
Merits of outsourcing:

1. It provides an opportunity to the organisation to concentrate on areas in which it has core competency or strength.
2. It helps better utilisation of its resources as the management can focus its attention on selected activities and attain higher efficiency.
3. It helps the organisation to get an expert and specialised service at competitive prices. It helps in improved service and reduction in costs.
4. It facilitates inter-organisational knowledge sharing and collaborative learning.
5. It enables expansion of business as resources saved from outsourcing can be used for expanding the production capacity and diversified products.

Limitations of outsourcing

1. It reduces confidentiality as outsourcing involves sharing a lot of information with others.
2. It may be opposed by labour unions who feel threatened by possible reduction in their employment.
3. In the name of cost cutting, unlawful activities such as child labour, wage discrimination maybe encouraged in other countries.
4. The organisation hiring others may face the problem of loss of managerial control because it is more difficult to manage outside service providers than managing one’s own employees.
5. It causes unemployment in the home country.